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10. Blue Devils Co. has a beta of 1.36. The return on the market portfolio is 11.47 percent and the risk-free rate is 2.92 percent.

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10. Blue Devils Co. has a beta of 1.36. The return on the market portfolio is 11.47 percent and the risk-free rate is 2.92 percent. Blue Devils issued 13-year zero coupon bonds today. Currently, these bonds are selling at 28.5 percent of face value of $1,000. The company has a market value of equity equal to $328 million and a market value of debt equal to $127 million. The tax rate is 28 percent. (a) ( 1 point) What is the company's cost of equity? (b) (1 point) What is the company's before-tax cost of debt? (c) ( 0.5 point) What is the equity weight of the company's capital structure? (d) ( 0.5 point) What is the debt weight of the company's capital structure? (e) ( 1 point) What is the company's weighted average cost of capital (WACC)

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