Weighted average cost of capital

A firm has $600 million in equity and $400 million in debt

The yield to maturity on its debt is 4%

The tax bracket is 20%

The risk free rate of interest is 1%

Write the month of your birthday here 2 ; Write the day of your birthday here 10

The beta is 1.x, where x is the day of your birthday (e.g. 1.3 if you were born on the 3^rd, 1.18 if you were born on the 18th)

The expected return on the market is 9.y%, where y is the number corresponding to the month of your birthday (e.g. 9.3% for March)

Compute the WACC for this firm using the data above. You may assume the target (D/E) weights of the firm equal its current weights (6 points)