The Gin Corp. is expected to pay a dividend of $3 which is expected to grow at 2% for a foreseeable future. The stock of the GiN Corp. is currently selling at a market price of $40. The company...

The Gin Corp. is expected to pay a dividend of $3 which is expected to grow at 2% for a
foreseeable future. The stock of the GiN Corp. is currently selling at a market price of
$40. The company recently expanded its operations by issuing 10-year Corporate bond at
par value ($1,000) which pays an annual coupon payment of $80. If the debt-equity ratio
of the company is 0.40 and the corporate tax rate is 30%, what is the weighted average
cost of capital of the company?
Calculate the weighted average cost of capital.