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2 15 points A company, Cardiac B, has a target capital structure of 60% debt and 40% Equity and the tax rate is 21%. If

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2 15 points A company, Cardiac B, has a target capital structure of 60% debt and 40% Equity and the tax rate is 21%. If the cost of debt is 8% and the cost of equity can be calculated using the CAPM from information below, what is the WACC of the Cardiac B at its target capital structure? Beta Cardiac B Market Return as defined by SP 504 Risk Free Rate - T Bills 1.99 12.00% 1.00%

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