(2) Assignment: Determine cos The after-tax cost of equity funding? cs The after-tax cost of long-term debt funding? os The book value weights? os The marginal or market value weights? cos The after-tax weighted average cost of capital (WACC) at book value? cs The after-tax weighted average cost of capital (WACC) at market value? Marginal Tax Bracket: 21\% @ Equity Information cos 50 million shares cos Issued with $40 Par value cs Sold at $40 per share, no excess cos Market Price: $80 per share cosD0=$5.15 cos Growth Rate =5.0% Co Flotation Cost =9.0% cs Retained Earnings =$1 billion cs Debt Information cos $1 billion in outstanding debt cos$1,000 face value per bond cos Current quote =110 cos Coupon rate =9%, semiannual coupons cos15 years to maturity cos Flotation Cost =2%