Question: please show work Question 8 - WACC [4 points]: Midwest Electric Company (MEC) uses only debt and retained earnings. It can borrow unlimited amounts at

please show work

Question 8 - WACC [4 points]: Midwest Electric Company (MEC) uses only debt and retained earnings. It can borrow unlimited amounts at an interest rate of cu=10% as long as it finances at its target capital structure, which calls for 40% debt and 60% common equity. Its last dividend was $2 (i.e., D0=$2 ), its expected constant growth rate is 4%, and its common stock sells for $20. MEC's tax rate is 40%. What is its WACC

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