SLL Corporation's balance sheet is shown below. The current rate on treasury bonds is 7%. The yield to maturity on SLL's bonds is 10%. Assume a market risk premium of 8%. SLL's tax rate is 40%. SLL's stock price is $45, and it has 2 million shares outstanding. SLL's beta is unknown because it only recently went public, but it is known that a comparable firm's stock has a beta of 1.2 and that the comparable firm's debt ratio (D/(D+E)) is 0.4. What is the weighted-average cost of capital for SLL's Corporation? 

SLL's Corporation
Balance Sheet ($ millions)
Assets				Liabilities and Equity
Cash and securities		10		Bonds		20
Accounts receivable		50		Common stock		50
Inventory		50		Retained earnings		80
Net fixed assets		40
Total assets		150		Total liability