Sales = 10,000 units
Sales Price per unit = $10
Variable Cost per unit = $5
Fixed Costs = $10,000
Bonds Outstanding = 15,000
Kd = on Outstanding Bonds = 8%
Tax Rate = 40%
Shares of Common Stock Outstanding = 10,000
Beta = 1.4
Krf = 5%
RPm = 4%
Dividend Payout Ratio = 60%
Growth Rate = 8%

I would like to know how the answer is derived. I have spent all day on this but I am missing something.
Thanks,
dsmondoc