The American Movie Company has the following sources of financing reported on its balance sheet:

Liabilities & Equity	Book Value
Debt (13% coupon bonds, $1000 face value)	$4,000,000
Common stock, 100,000 shares	$6,000,000
Total	$10,000,000

The bonds are currently selling for $900, and have a yield-to-maturity of 15%. The common stock is currently priced at $70 per share, and has an estimated beta of 1.5. The current risk-free rate is 6%, and the expected return on the market portfolio is 16%. The company pays taxes at the rate of 40%.

Compute the firm?s weighted average cost of capital. Where calculations are required, please show them in the table below.

The American Movie Company has the following sources of financing reported on its balance sheet: Liabilities & Equity Book Value Debt (13% coupon bonds, $1000 face value) $4,000,000 Common stock, 100,000 shares $6,000,000 Total $10,000,000 The bonds are currently selling for $900, and have a yield-to-maturity of 15%. The common stock is currently priced at $70 per share, and has an estimated beta of 1.5. The current risk-free rate is 6%, and the expected return on the market portfolio is 16%. The company pays taxes at the rate of 40%. Compute the firm's weighted average cost of capital. Where calculations are required, please show them in the table below. Cost of Debt: Estimated weight of Debt: Common stock: Common stock: WACC =