Sisilia's Manufacturing Co. has 80,000 bonds outstanding that are selling at par value, Bonds with similar characteristics are yielding 8.5%. The company also has 4 million shares of common stock outstanding. The stock has a beta of 1.1 and sells for RM 40 a share. The treasury bill is yielding 4% and the market risk premium is 8%. Jack's tax rate is 35%. Analyse Jack's weighted average cost of capital.