11. Eastman Chemical Company has $5 billion of debt and $15 billion of equity capital. The debt consists of $1 billion of loans with an interest rate of 4% per year compounded quarterly and $4 billion of $1,000, 1.5% per quarter, 20-year bonds at a selling price of $990, after commissions. EASTMAN's long term market risk premium is 4%; the risk-free rate is 3%; EASTMAN's beta is 1.30; and its marginal corporate tax rate is 40%. A $2 billion investment in Vietnam is being considered. It will be a new plant, wholly owned by EASTMAN and constructed on land EASTMAN previously purchased, i.e., a greenfields site. The plant will use slightly different technology from what EASTMAN employs at its other sites. A 4% compound annual growth rate is projected for the overall economy; the economic justification for the plant is based on 50% cost savings and 50% revenue growth. Because this will be the first plant built on the site, 30% of the total capital invested is allocated capital. a) What is EASTMAN's weighted average cost of capital? Show all calculations; give your answer as a percentage and to 2 decimal places. (5 pts) Employing EASTMAN's hurdle rate calculator, what will be the after-tax minimum attractive rate of return for the investment under consideration? Show all calculations; give your answer as a percentage and to 2 decimal places. (5 pts) b)