Show all of your work for maximum credit. You may use a financial calculator and show your entries (i.e., FV = 1000, etc).

You are an outside analyst attempting to estimate the cost of capital for Panther Industrial. You do not know the corporations target capital structure. The balance sheet shows the total of common stock and retained earnings is $120 million. The companys stock has a beta of 1.7 and the stock price is $24.00 per share. There are 30 million shares of stock outstanding, and the current risk free rate is 2.80%. The company recently paid a dividend of $1.12, and they typically pay out about 20% of their earnings in cash dividends. PIs return on equity is 10% and the expected return on the market is 9.00%. The balance sheet shows a total of $290 million of long-term debt with a coupon rate of 6.95%. The yield to maturity is 7.20%(before tax) and the total current market value is $280 million. What is your estimate of PIs weighted average cost of capital if their marginal tax rate is 30%? (Be sure to consider all methods for the components costs if there is enough information).