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12542 You have the following Information about Burgundy Basins, a sink manufacturer. Equity shares outstanding Stock price per share Yield to maturity on debt

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12542 You have the following Information about Burgundy Basins, a sink manufacturer. Equity shares outstanding Stock price per share Yield to maturity on debt Book value of interest-bearing debt Coupon interest rate on debt Market value of debt Book value of equity Cost of equity capital Tax rate 20million $ 30 320million 7.5% 3.59 $200 million $ 320million 10.0% 35% Burgundy is contemplating what for the company is an average-risk investment costing $20 million and promising an annual ATCF of $4.0 million in perpetuity. a. What is the Internal rate of return on the investment? (Round your answer to 2 decimal places.) Intemal rate of return b. What is Burgundy's weighted-average cost of capital? (Round your answer to 2 decimal places.) Weighted-average cost

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