Determine the target weighted average cost of capital for Felicia Fred, given following assumptions:

 Determine the target weighted average cost of capital for Felicia & Fred, given following assumptions:

• Weights of 30% debt and 70% common equity (no preferred equity)
• A 35% tax rate
• The cost of debt is 9%
• The beta of the company is 1.2
• The risk free rate is 2%
• The return on the market is 12%