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2a pls -) O'Brien Inc. has the following data: ref 5.00%; RPM = 6.00% (market risk premium); and b = 1.05. What is the firm's

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2a pls
-) O'Brien Inc. has the following data: ref 5.00%; RPM = 6.00% (market risk premium); and b = 1.05. What is the firm's cost of equity from retained earnings based on the CAPM? 2a) To help finance a major expansion, Castro Chemical Company sold a non-callable bond several years ago that now has 20 years to maturity. This bond has a 9.50% annual coupon, paid semiannually, sells at a price of $1,080, and has a par value of $1,000. If the firm's tax rate is 40%, what is the component cost of debt for use in the WACC calculation? DII F8 DD F9 F7 F6 F5 F11 F10 * ) & + % 5 6 7 8 0) 0

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