I have the answer, but need to know what formulas are used to get to those answers.

The table below shows a book balance sheet for the Wishing Well Motel chain. The company's long-term debt is secured by its real estate assets, but it also uses short-term bank financing. It pays 10% interest on the bank debt and 9% interest on the secured debt. Wishing Well has 10 Million shares of stock outstanding, trading at $90 per share. The expected return on Wishing Well's common stock is 18%. Calculate Wishing Well's WACC. Assume that the book and market values of Wishing Well's debt are the same. The marginal tax rate is 35%.

Cash and marketable Securities - 100M Bank Loan - 280M

Accounts Receivable - 200M Accounts Payable - 120M

Inventory - 50M Current Liabilities - 400M

Current Assets - 350 M Long-term Debt - 1800

Real Estate - 2,100M Equity - 400M

Other assets - 150 Total - 2,600M

Total - 2,600M

Answers:

Capital Structure Proportions are:

Bank Debt (rd 10%) 280M 9.4%

Long Term Debt (rD 9%) 1800M 60.4

Equity (rE 18 percent, 90 X 10M shares) 1900M 30.2

WACC = 9.6%