Orange Corp has 1 million shares outstanding and the stock is currently trading at $10. The company has two different bonds outstanding. First, it has 5,000 zero-coupon bonds outstanding. Each zero-coupon bond has a face value of $1,000, will mature in 5 years and is currently quoted at 65% of its face value. Second, the company has 5,000 coupon bonds outstanding. The price of each Coupon Bond is currently $940.00 and the yield to maturity is 11%. You have decided to calculate the cost of equity using the equation SML(MEDAF). You have estimated that the risk-free rate is 5% and the expected rate of return on the market portfolio is 10%. You also estimated the company beta at 2.5. Finally, the company is subject to a tax rate of 30%., calculate the cost of capital (WACC) of Orange Corp ?