Martin Mining has the following information regarding its debt and equity. Find the weighted average cost of capital. Assume the tax rate is 25%.

Beta 1.25

Expected Return on Market 11.25%

Treasury Bond Rate 3.8%

Flotation Cost of Equity 5%

Book Value of Debt $2,000,000,000

Market Value of Debt $2,500,000,000

Book Value of Equity $3,500,000,000

Market Value of Equity $4,000,000,000

Bond Information: Coupon rate = 8%, maturity = 20 years, maturity value =$1,000 and the current price is 1,082.25. Assume interest is paid semiannually.