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Jack's Construction Co. has $80 million in outstanding debt. The debt has a yield to maturity of 8.5%. The company also has 4 million shares

Jack's Construction Co. has $80 million in outstanding debt. The debt has a yield to maturity of 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?


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