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URGENT A company is 30% financed by riskfree debt The interest rate is 8% the expected market risk

Question

URGENT:

A company is 30% financed by risk-free debt. The interest rate is 8%, the expected market risk

premium is 6%, and the beta of the company’s common stock is .69.

a. What is the company cost of capital?

b. What is the after-tax WACC, assuming that the company pays tax at a 30% rate?

NB (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Financial Accounting