A company has a total book value of equity of $10 million and the book value p

A company has a total book value of equity of $10 million and the book value per share
is $20. However its stock currently sells at a market price of $30 per share and its cost of equity capital
(rs) is 15 percent. The firm%u2019s bonds have a face (or book) value of $5 million and each bond sells at 110 percent of face value (this implies that each bond is selling at a 10% premium above its
$1000 face value per bond). The yield to maturity (rd) on its
bonds is 9 percent and the firm%u2019s tax rate is 40 percent. Find the weighted average cost of capital (WACC) for this company based on its market share weights for
debt and equity (rd and rce).