Youngsten electric is contemplating new projects for the next year that will require $30,000,000 of new financing. in keeping with its capital structure, youngsten plans to use debt & equity financing as follows: issue $10,000,000 of 20-year bonds at a price of 101.5, with a coupon of 10%, and flotation costs of 2.5% of par value. use internal funds generated from earnings of $20,000,000.the equity market is expected to earn 15%. u. s. treasury bonds currently are yielding 9%. the beta coefficient for youngsten's common stock is estimated to be 0.8. youngsten is subject to a 40% corporate income tax rate. youngsten has a price/earnings ratio of 10, a constant dividend payout ratio of 40%, and an expected growth rate of 12%.assume youngsten has an after-tax cost of debt of 9% and an after-tax cost of equity of 15%. youngsten's weighted average cost of capital is:
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