A public utility commission requires that a trust fund be established by a private company wishing to build and maintain a water treatment plant for a small city. The company must deposit enough money to build the plant and then to operate the facility in perpetuity. The plant will cost $ 11000000 to build and has an annual operating expense of $ 800000. The trust fund earns 7% interest. What amount must the company put in the trust fund

Western electric has 32,000 shares of common stock outstanding at a price per share of $79 and a rate of return of 13.00 percent. the firm has 7,300 shares of 7.80 percent preferred stock outstanding at a price of $95.00 per share. the preferred stock has a par value of $100. the outstanding debt has a total face value of $404,000 and currently sells for 111 percent of face. the yield to maturity on the debt is 8.08 percent. what is the firm's weighted average cost of capital if the tax rate is 39 percent?