Based on the information below calculate the weighted average cost of capital.Great Corporation has the following capital situation.Debt: One thousand bonds were issued five years ago at a coupon rate of 11%. They had 20-year terms and $1 000 face values. They are now selling to yield 9%. The tax rate is 37%Preferred stock: Two thousand shares of preferred are outstanding each of which pays an annual dividend of $7.50. They originally sold to yield 15% of their $50 face value. They’re now selling to yield 11%.Equity: Great Corp has 108 000 shares of common stock outstanding currently selling at $18.48 per share. Use the risk premium approach and assume a 3% risk premium
