The following are balance sheets for the Genatron Manufacturing Corporation for the years 2010 and 2011: BALANCE SHEET 2010 2011 Cash $50,000 $40,000 Accounts receivable $200,000 $260,000 Inventory $450,000 $500,000 Total current assets $700,000 $800,000 Fixed assets (net) $300,000 $400,000 Total assets $1,000,000 $1,200,000 Bank loan, 10% $90,000 $90,000 Accounts payable $130,000 $170,000 Accruals $50,000 $70,000 Total current liabilities $270,000 $330,000 Long-term debt, 12% $300,000 $400,000 Common stock, $10 par $300,000 $300,000 Capital surplus $50,000 $50,000 Retained earnings $80,000 $120,000 Total liabilities and equity $1,000,000 $1,200,000 a. Calculate the weighted average cost of capital based on book value weights. Assume an after-tax cost of new debt of 8.6 percent and a cost of common equity of 16.5 percent. b. The current market value of Genatron