Q$1$: $(7$ points$)$ Sparrow Corp. has $$100$ million face value of outstanding debt with a coupon of $10\%$ and a yield to maturity of $8\%($annualized$).$ The bonds make semi$-$annual payments, and have $10$ years to maturity. The company also has $1$ million shares of common stock with book value per share of $$35$ and a market value per share of $$50.$ The current beta of the stock is $1\mathrm{.}5.$ The Treasury bill rate is $5\%,$ and the market risk premium is $8\mathrm{.}5\%.$ The company is in the $40\%$ tax bracket. What is the company's current weighted average cost of capital?