Outstanding Debt is 15,000,000

Threes Electronic plans to finance by a combination of 1/3 debt and 2/3 internal equity (i.e., retained earnings). The beta of the firm's stock is 1.75. The firm uses a risk-free rate of 4% and the market risk premium of 7%. Threes has 15,000 9 percent semi-annual coupon bonds outstanding, $1,000 par value per bond, 15 years to maturity, selling for 108 percent of par. Threes Electronic can issue bonds for $5 ~ $6 million in the similar terms.

What is the cost of Capital?

What is WACC?

I think that the cost of equity would be 4 +(7*1.75)=16.25%

I think that taking 15,000,000 x .33 debt cost would be 4,950,000

I think that Cost of Equity would 15,000,000 X.66 = 9,900,000

Not sure how to get the cost of capital with the bonds and percent par!