Suppose that Rolex Company is planning to raise 100 million dollars funding from different sources

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Suppose that Rolex Company is planning to raise 100 million dollars funding from different sources. The draft plan indicates that the company will issue a bond and stocks as follows:

• Issue a bond with a market value of 40 million dirhams and 5% yield to maturity.
• Issue 2 million Common Stocks at 30 dirhams per share, and the common stocks are expected to pay 4 dirhams dividend per share and it is expected to grow at a constant growth rate of 2%.
• The company is in the 30 percent tax bracket.

Calculate the weighted average cost of capital of the company