Trumpit Resort Company currently has 1.2 millioncommon shares of stock outstanding and the stock has a beta of 2.2. Trumpit haslearned that it can issue new common stock at $10 a share. The currentrisk-free rate of interest is 3 percent and the expected market return is 10percent. If Trumpit issues up to $2.5 million of new bonds, the bonds will bepriced at par and have a yield of 13.65 percent; if it issues bonds beyond $2.5million, the expected yield will be 16 percent. Trumpit’s marginal tax rate is30 percent. If Trumpit raises $7.5 million of new capital while maintaining thesame debt-to-equity ratio, what is its weighted average cost of capital?