Show me the steps to solvYou have collected the following information about Dragon’s Breath, a game manufacturer: • There are 50,000 common shares outstanding, trading for $110. • There are 10,000 bonds outstanding, each with a $1000 par value. They are 7% annual coupon (with semi-annual payments) bonds and have 10 years to maturity. They are currently priced at $600. You had estimated that the market risk premium is 5.1%, and the risk-free rate is 3.4%. The firm is relatively new, and so you don’t have enough data available to accurately estimate the company’s beta. Instead, you decide to use the beta of the industry to calculate the cost of equity. The equity beta of the industry is 1.2. However you remember that the industry’s debt-to-equity ratio is equal to 0.5. So far, all you have found was the cost of debt, which worked out to be 9.5%. There is no corporate-tax rate. Demonstrate the process used to compute that cost of debt, and then proceed to find the WACC.e