Your mission is to determine the cost of capital for RC Ontario. The company has a tax rate

of $40\%$ and $100,000$ common shares outstanding with a price of $$33\mathrm{.}18554$ per share. The estimated beta

for common stock is $2.$ The expected market return is $10\%,$ and the risk$-$free rate is

also $4\%.$

Additionally, the company has two outstanding debt issues. The first broadcast consists of $1,000$

semi$-$annual coupon bonds, each having a par value of $$1,000,$ a coupon rate

annual rate of $10\%$ and currently trade at a yield to maturity of $10\%.$ The second

issue includes $1,000$ zero$-$coupon bonds, each with a par value of $$1,000,$

trading at $70\%$ of their face value and maturing in $12$ years.

Your task is to calculate the weighted average cost of capital for RC Ontario based on

information provided. PLEASE SHOW ALL PROCEDURE!