Zip Ltd. has an outstanding loan of $50 million with a bank, and the interest rate on the loan is 3%. Zip Ltd. has a second type of debt which is a bond issue that the company sold 2 years ago for $38 million. The market value of these bonds today is $30 million. The effective annual yield on these bonds is 5%. The company has also 10 million ordinary shares outstanding with a current price of $12 per share. The Beta of the ordinary share is 1.2, the market risk premium is 6% and the risk free rate is 2.5%. Zip Ltd. has a 30% corporate tax rate.

Compute Zip Ltds weighted average cost of capital (WACC).

(Show all of your calculation).