The firm is $55\%$ equity financed; shares currently trade at $$37\mathrm{.}00$ and do not pay a dividend. Debt capital is provided by a single issue of bonds $(20$ year, $$1,000$ par value, $$82\mathrm{.}50$ annual coupon$)$ currently trading at $$1,175.$ The firms beta is $1\mathrm{.}25.$ Their traditional hurdle rate has been $12\%,$ though the rate has not been reviewed in many years. Over the years, shareholders have come to expect a $10\%$ return. Their corporate tax rate is $25\%.$ Treasury securities are yielding $5\mathrm{.}25\%.$ The market rate of return on equities is $9\mathrm{.}25\%.$Calculate the firms Weighted Average Cost of Capital. show all formulas and work