Burwood Investment Ltd. has :  8 million shares of ordinary shares outstanding, the price is $32 and beta is 1.15. Market risk premium is 10%, Treasury bonds are yielding 5%.  0.5 million shares of 6% preference shares outstanding, par value is $100, the price is $67.  100,000 of 9% semiannual bonds outstanding, 15 years to maturity, and sell for 91% of par (par value =$1000). Tax rate is 35%. 

1.What is the capital structure? 

2.What is the WACC?