Kilborn Corporation's balance sheet is shown below.The current rate on treasury bonds is 7%.The yield to maturity on Kilborn's bonds is 10%.Assume a market risk premium of 8%.Kilborn's tax rate is 40%.Kilborn's stock price is $45,and it has 2 million shares outstanding.Kilborn's beta is unknown because it only recently went public,but it is known that a comparable firm's stock has a beta of 1.2 and that the comparable firm's debt ratio (D/(D+E))is 0.4.What is the weighted-average cost of capital for Kilborn Corporation?
Note that for Kilborn:

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The Answer of Kilborn Corporation's balance sheet is shown below.The current rate on treasury bonds is 7%.The yield to maturity on Kilborn's bonds is 10%.Assume a market risk premium of 8%.Kilborn's tax rate is 40%.Kilborn's stock price is $45,and it has 2 million shares outstanding.Kilborn's beta is unknown because it only recently went public,but it is known that a comparable firm's stock has a beta of 1.2 and that the comparable firm's debt ratio (D/(D+E))is 0.4.What is the weighted-average cost of capital for Kilborn Corporation?
Note that for Kilborn:

Kilborn Corporation's Balance Sheet Is Shown Below