You are the CFO of a company, and you need to analyze a new product line. The company has 10% coupon bonds outstanding with $1000 face value that trade at par. Their stock,which trades at $30 on the NASDAQ has a beta of 1.70 and just paid a dividend of $3.00 and the dividends are expected to grow at 6% annually, indefinitely. The company has a debt-to-equity ratio of 4 and pays taxes at the 34% annual tax rate. If the expected return on the market is 15% and treasury bills pay 4%, what is the weighted average cost of capital for FIN317 Corp? (assume no preferred stock)

HINT: Use the debt-to-equity-ratio to find the weights; wd = DEBT/(Total Assets) and ws = EQUITY/(Total Assets).