The Renoir Company's cost of equity is 18 percent. Renoir's before tax cost of debt is 8 percent, and its tax rate is 40 percent. Using the following balance sheet, calculate Renoir's after-tax weighted average cost of capital. (4points)

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Assets Cash Accounts receivable Inventories Plant & equipment net Total Assets Liabilities Accounts Payable Accrued taxes due Long-term debt Equity Total liabilities S 100 S 400 S 200 S1300 S2,000 S 200 S 200 S 400 S2,000