Layon Inc. has 10,000 shares of common stock outstanding at a market price of $35 a share. The firm also has a bond issue outstanding with a total face value of $250,000 which is selling for 102 % of face value. The cost of equity is 11 % while the pre- tax cost of debt is 8 %. The firm has a beta of 1.1 and a tax rate of 34 %. What is Layon's weighted average cost of capital? Show your work! 1 DIE " I B SS GO