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You gather the following information on Bingo's financing: - Market value of debt =$12,000,000 - Book value of debt =$8,000,000 - Pre-tax cost of debt

You gather the following information on Bingo's financing: - Market value of debt =$12,000,000 - Book value of debt =$8,000,000 - Pre-tax cost of debt =5% - Bingo's beta =1.5 - Risk-free rate =3% - Market risk premium =6% - Shares outstanding =100,000 - Current share price =$40 - Book value of equity =$2,000,000 - Tax rate =40% Which of the following is closest to the firm's WACC

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