You are estimating the weighted average cost of capital (WACC) for your company based on the following information:

Equity information 50 million common shares outstanding $80 market price per share Stock beta of 1.15, Market risk premium of 9% Risk-free rate of 5%

Debt information $1 billion of debt at face value Debt quoted price = 110 Coupon rate = 9%, semi-annual 15 years to maturity Marginal tax rate of 40%

Calculate the following returns: (1/100 of one percent without % sign, e.g. 12.671, if a negative percentage, -9.56).

1. Cost of equity (%):

2. Cost of debt (%):

3. Proportion of debt (%):

4. Proportion of equity (%):

5. Weighted average cost of capital (%):