The table shows a book balance sheet for the Wishing Well Motel chain. The companys long-term debt is secured by its real estate assets, but it also uses short-term bank financing. It pays 10% interest on the bank debt, which is permanent financing and 9% interest on the secured debt. Wishing Well has 10 million shares of stock outstanding, trading at $90 per share. The expected return on Wishing Wells common stock is 18%

Calculate Wishing Wells WACC. Assume that the book and market value of Wishing Wells debt are the same. The marginal tax rate is 35%. Please show your work.

Balance sheet for Wishing Well, Inc. (in $ millions)

Cash & Market securities	100	Bank loan	280
Accounts receivable	200
Inventory	50	Accounts payable	120
Current assets	350	Current Liabilities	400
Real estate	2100	Longterm debt	1800
Other assets	150	Equity	400
Total	2600	Total	2600