Instructions: You are required to use a financial calculator or spreadsheet (Excel) to solve 10 problems related to the cost of capital (page 4). You are required to show the following 3 steps for each problem (sample questions and solutions are provided for guidance): (i) Describe and interpret the assumptions related to the problem. (ii) Apply the appropriate mathematical model to solve the problem. (iii) Calculate the correct solution to the problem. Submit all answers as percentages and round to two decimal places.

Cattigear Inc. has a target capital structure of 60% debt and 40% common equity and is in the 40% marginal tax rate. The corporations before-tax cost of debt is 8% and its cost of common stock is 18%. What is the firm's WACC?