Priscilla Aidoo has gone public with her Shiloh Enterprise restaurant chain. Her current capital structure is as follows: 10,000 shares of common stock at $20 per share at a cost of 14%; 3,200 shares of preferred stock at $40 per share at a cost of 11%; and 600 bonds at current market value of $980 each at a before-tax cost of 9%. If her corporate tax rate is 22%, what should be the companys required rate of return?

Hilton Corporation has 1 million shares of common stock outstanding and 80,000 bonds with 6% coupon at $1000 par each. The stock currently sells at $53 per share and has a beta of 1.15; the bonds have 25 years to maturity and sell at $1141. The market risk premium is 6.8% and Treasury bills are yielding 3.1%. If Hiltons corporate tax rate is 21%, what is the companys cost of capital (WACC)?