Just Kickin's debt financing comes exclusively from 3-year notes, which they issue as needed, generally once or twice per year. They consistently pay off these notes as possible, always before the due date, but otherwise repaying the highest-interest notes first. Their most recent issuance was in December 2022 on a $375,000 note for 6.65%.

Just Kickin' has never issued preferred stock but pays a regular dividend on their common stock. The risk-free interest rate is 4.6%; the current market risk premium is 5.5%.

ST Debt (current portion of LT debt)	5,500,000
Long-term Debt	16,000,000
Common Stock	34,700,000
Retained Earnings	(390,000)
Common shares outstanding	4,122,000
Common stock market price	53.67
Just Kickin' beta	1.33

1.Use the data above and in the spreadsheet to calculate Just Kickin's Weighted Average Cost of Capital. Assume that the company's capital structure is at their planned levels. Base your WACC calculation on the larger book value or market value.

2. If Just Kickin' had delayed their last note issuance until March 2023, the interest rate would have been 6.9%. Would this have affected their WACC calculation? Explain.