KOC is a publicly traded company Istanbul. The firm provides nutriture supplies for the last 35 years. At the close of 2020 the firms capital structure was as follows:

Bonds	2100
Common Stock	3400
Total	5500

The company plans to keep its debt structure in the future. The pre-tax cost of debt is 7 percent and 20 percent is the cost of common stock. The marginal tax rate for the firm is 34 percent.

What is KOCs weighted average cost of capital?

Explain what weighted average cost of capital is and why we need to calculate it as a financial manager (you may want to touch on investment decisions, different types of investors and their demands, firm's goal, etc.).