Soft Paper Ltd has issued long$-$term bonds with a market value of $$40$ million and an expected return of $8\%.$ It has $3$ million shares outstanding trading for $$12$ each. At the price, the shares offer an expected return of $15\%.$ What is the weighted$-$average cost of capital for Soft Paper$$s assets and operations? Assume Soft Paper pays $30\%$ taxes. Explain the intuition behind the formula of the weighted$-$average cost of capital.