23 of 30 Question 23 WACC Sample Problem 10 points Seve 1. Sanstreet, Inc. went public by issuing 1 million shares of common stock AED 25 per share. The shares are currently trading at AED 30 per share. Current risk free rate) 4%, market risk premium is 8% and the company has a beta coefficient of 1.2. During last year, it issued 50,000 bonds of AED 1,000 par paving 10% coupon annually maturing in 20 years. Bond Yield is 10.6%. The bonds are currently trading at AED 950. The tax rate is 30%. Calculate the weighted average cost of capital. (10 Points" SHOW WORK ON WORKSHEET QUESTION FOR PARTIAL CREDIT. a. What is Firm X's after-tax cost of debt to nearest one decimal (2 points) b. What is Firm X's cost of equity? to nearest one decimal? % (2 points) Question 23 of 30 Question 23 WACC Sample Problem 10 points Seve 1. Sanstreet, Inc. went public by issuing 1 million shares of common stock AED 25 per share. The shares are currently trading at AED 30 per share. Current risk free rate 4%, market risk premium is 8% and the company has a beta coefficient of 1.2. During last year, it issued 50,000 bonds of AED 1,000 par paving 10% coupon annually maturing in 20 years. Bond Yield is 10.6%. The bonds are currently trading at AED 950. The tax rate is 30%. Calculate the weighted average cost of capital. (10 Points) SHOW WORK ON WORKSHEET QUESTION FOR PARTIAL CREDIT. a. What is Firm X's after-tax cost of debt to nearest one decimal? (2 points) b. What is Firm X's cost of equity? to nearest one decimal? (2 points)