Question - What is the WACC?

Board of Directors target debt to capital ratio is 18%., Beta - 1.203. tax rate 40%

		Flash Memory, Inc.
	2007	2008	2009
Sales ($ millions)	77	81	89
EPS ($)	1.52	0.09	1.68
Dividend per share ($)	--	--	--
Closing stock price ($)	n/a	n/a	n/a
Shares outstanding (millions)	1.492	1.492	1.492
Book Value per share ($)	11.43	11.52	13.20
ROE	13.28%	0.78%	12.75%
Capitalization (book value)
Debt	28%	34%	34%
Equity	72%	66%	66%

	2007	2008	2009	2010
Net sales	$77,131	$80,953	$89,250	$120,000
Cost of goods sold	$62,519	$68,382	$72,424	$94,800
Gross margin	$14,612	$12,571	$16,826	$25,200
Research and development	$3,726	$4,133	$4,416	$6,000
Selling, general and administrative	$6,594	$7,536	$7,458	$10,032
Operating income	$4,292	$902	$4,952	$9,168
Interest expense	$480	$652	$735	$856
Other income (expenses)	-$39	-$27	-$35	-$50
				$806
Income before income taxes	$3,773	$223	$4,182	$8,262
Income taxes (a)	$1,509	$89	$1,673	$3,305
Net income	$2,264	$134	$2,509	$4,957
Earnings per share	$1.52	$0.09	$1.68	$3.32