Question $10$

Appa, Inc. is currently trading at $$26$ per share. It has $100$ million shares outstanding. The company has issued bonds that are trading at $80$ percent of its par value. The bonds pay just one coupon per year and have a total book value of $$500$ million. The current yield on the bonds is $10$ percent per annum. The risk$-$free rate is $5$ percent and the expected return on the market is $15$ percent. Market analysts estimates that Appa has a beta of $1\mathrm{.}5.$ The company is subject to a corporate tax rate of $35$ percent. What is Appa's WACC?