QUESTION $1$

Your boss has just asked you to calculate your firm's cost of capital. Below is potentially relevant information for your calculation. What is your firm's Weighted Average Cost of Capital?

Common Equity: Book Value $=$$$105$ million, Market Value $=$$$169$ million. Net fncome from most recent fiscal year $=$$$14$ million, Required rate of return $($from CAPM$)=9\%,$ Dividend Yield $=2\%.$

Debt: Book Value $=$$$119$ million, Market Value $=$$$87$ million, average coupon rate $=6\%,$ average yield to maturity $=3\mathrm{.}4\%,$ average maturity $=21$ years.

Corporate Tax Rate $=57\%.$

$($ENTER as a RAW NUMBER rounded to FOUR DECIMAL PLACES, i$.$e$.$ if your answer is $7\mathrm{.}1356\%,$ enter $7\mathrm{.}1356)$