Wequity = proportion of equity in a market-value capital structure
re = cost of equity capital
From Exhibit 10, Debt/equity ratio=0.525
tc = 0.35
From page 237, Rf = 0.85%
From Exhibit 2, Wdebt =44646/129686=0.344
Wequity = 85040/129686=0.656
From Exhibit 11, rd is calculated as below which is 5.335%