Problem 19-14 WACC The table below shows a simplified balance sheet for Rensselaer Felt. The debt has just been refinanced at an interest rate of 7.50% (short term) and 9.50% (long term). The expected rate of return on the companys shares is 16.50%. There are 7.62 million shares outstanding, and the shares are trading at $40. The tax rate is 35%.

Cash and marketable securities $ 3,100 Short-term debt $ 77,200 Accounts receivable 121,600 Accounts payable 63,600 Inventory 126,600 Current liabilities 140,800 Current assets 251,300 Property, plant, and equipment 306,800 Long-term debt 210,200 Other assets 87,400 Deferred taxes 46,600 Shareholders' equity 247,900 Total $ 645,500 Total $ 645,500 Calculate this companys weighted-average cost of capital.