$ (in millions, e.g., 5.00 for 5 million).	Weight in % (e.g., 2.00 for 2%)	Pre-tax cost of capital in % (e.g., 3.00 for 3%)	after-tax cost of capital % (e.g., 4.00 for 4%	after tax weighted cost of capital in % (e.g., 6.00 for 6%)
DEBT			5.00
ORDINARY SHARES
TOTAL		100.00			WACC=

JO a small manufacturing company based in Perth with annual revenue of less than $10,000,000. The company produces USB drive for local markets. JO announced a plan at its recent annual general meeting to produce external hard disk as a new product line. This requires an investment of $4,000,000 which the company plan to borrow from a bank at an annual interest of 5%. The following notes are related to JO capital structure and the new proposed investment. The company's total equity is $11,000,000 which is entirely made of ordinary shares which carries 10% annual dividend. JO currently has no other debts. In the light of additional debt, the investors revise their required rate of return to 12%. Calculate: 1. debt and ordinary shares 2. weight in %of debt and ordinary shares 3.after tax cost of debt 4.after tax cost of ordinary shares5.after tax weighted cost of debt 6.after tax weighted cost of ordinary shares 7.WACC

Where tax rate is 15%