The following are balance sheets for the Genatron ManufacturingCorporation for the years 2010 and 2011:BALANCE SHEET 2010 2011Cash $50,000 $40,000Accounts receivable 200,000 260,000Inventory 450,000 500,000Total current assets 700,000 800,000Fixed assets (net) 300,000 400,000Total assets $1,000,000 $1,200,000Bank loan, 10% $ 90,000 $ 90,000Accounts payable 130,000 170,000Accruals 50,000 70,000Total current liabilities $270,000 $330,000Long-term debt, 12% 300,000 400,000Common stock, $10 par 300,000 300,000Capital surplus 50,000 50,000Retained earnings 80,000 120,000Total liabilities and equity $1,000,000 $1,200,000a.Calculate the WACC based on book value weights. Assume anafter-tax cost of new debt of 8.63 percent and a cost ofcommon equity of 16.5 percent.