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11. (8 points) Redline Industrial Inc., a multinational corporation based in the US, has a beta of 1.1 versus a global index and 1.4 versus

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11. (8 points) Redline Industrial Inc., a multinational corporation based in the US, has a beta of 1.1 versus a global index and 1.4 versus the US index. They also just paid a dividend of $1.20. If the expected return on the global index is 11% and the rate on a US t-bill (risk free) is 3%, (a) what is the company's global cost of equity. Also, if their debt to value ratio is 0.40, their tax rate is 40%, and their before tax cost of debt capital is 6.60%, (b) what is their weighted average cost of capital

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