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please show the working process included formula. thank you Question 5 Bobby Corporation has a beta of 0.8 with Treasury-bill rate of 2.8% and market's

please show the working process included formula. thank you image text in transcribed
Question 5 Bobby Corporation has a beta of 0.8 with Treasury-bill rate of 2.8% and market's return of 12%. The company has 5,000,000 common shares outstanding with a market value of $2.00 per share. The company issues 1,000,000 preferred shares at $5.00 per share, with a stated dividend of $0.70 per share and a flotation cost of $1.00 per share. The company issues a 10-year bond with $1,000 par value, paying a coupon interest rate of 12% compounded semi-annually. The market price of the bond is $1,100. The company has borrowed $4,000,000 from a business bank. The company's tax rate is 25%. Based on all the information provided, determine Bobby Corporation's weighted average cost of capital (WACC). (13 marks)

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