1. You have been asked by your CFO to pull together your company's weighted average cost of capital. You have pulled together the following basic information about your company: On the most recent balance sheet, there was $50 million of short-term debt, $250 million of long-term debt and $50 million of cash. The company has 20 million shares outstanding, and the most recent shafe price was $22.50 per share. The company's marginal effective tax rate is 30%. The largest publicly traded bond issued by the company was issued in 2009 but matures in 10 years. There were $250 million of bonds issued at a par value of $1,000 per bond and a coupon of 6%, payable semi-annually. The bonds currently have a market value of $1,125 per bond. The current 10 year US Treasury has a yield of 2.00%. You estimate the market risk premium to be 6%. You estimate your company's Beta to be 0.95