Rotermagic Company supplies helicopters to corporate clients. Rotermagic has two sources of funds: long term debt with a market and book value of $32 million issued at an interest rate of 10%, and equity capital that has a market value of $18 million (book value of $8 million). The cost of equity capital for Rotermagic is 15%, and its tax rate is 30%. Rotermagic has profit centers in four divisions that operate autonomously. The company's results for 2020 are as follows:

Compute Rotermagic's Weighted Average Cost of Capital.

.0800

.0480

.0912

.0988