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

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