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1. Use the data in the table below to calculate the cost of equity and weighted-average cost of capital (WACC) of Hunter Industries. Hunter

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1. Use the data in the table below to calculate the cost of equity and weighted-average cost of capital (WACC) of Hunter Industries. Hunter Industries E(rm) Tax rate Beta Stock price end-2014 Outstanding shares Equity of Hunter Industries Value of Hunter Industries Interest paid, 2014 Debt, end-2014 Debt, end-2013 13.096 2% 40% .77 $48.34 1,350,000 $288,650 $8,225,000 $7,800,000

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