I'm not sure how this works but here it goes.

I have looked at papers for my class FIN/370 hoping that it would give me some clue on how to calculate the cost of debt but most of the papers don't have the formula or the calculations, just the answers. I have had issues with this class from the beginning and I'm sure that the problem has all of the information I need I just don't know where or how to put the problem together. You work for an investment banking firm and have been asked by management of Vestor Corporation (not real), a software development company, to calculate its weighted average cost of capital, to use in evaluating a new company investment. The firm is considering a new investment in a warehousing facility, which it believes will generate an internal rate of return of 11.5%. The market value of Vestor's capital structure is as follows: