I realize the answer is already shown, please show all calculations that give this answer.

(c )7. Jack's Construction Co. has 80,000 bonds outstanding that are selling at par value. a. b. e: d. e. Bonds with similar characteristics are yielding 8.5%. The company also has 4 million shares of common stock outstanding. The stock has a beta of 1.1 and sells for $40 a share. The U.S. Treasury bill is yielding 4% and the market risk premium is 8%. Jack's tax rate is 35%. What is Jack's weighted average cost of capital? 7.10% 7.39% 10.38 % 10.65 % 11.37 %