The following data pertains to Xena Corp. Using the information from the table, and assuming that the risk-free rate is 4.5% and the market risk premium is 6.2%, calculate Xenas weighted-average cost of capital: Xena Corp.

Total Assets $21,249

Interest-Bearing Debt (market value) $9,963

Average borrowing rate for debt 10.2%

Common Equity:

Book Value $5,535

Market Value $23,247

Marginal Income

Tax Rate 37%

Market Beta 1.64