3) Assume a risk-free rate of interest of 4%, an expected rate of return on the market portfolio of 9%, and a beta of 1.2 then the traditional domestic CAPM results in a cost of equity of: ANSWER 10

4) Assume a before-tax cost of debt of 8% and a tax rate of 35% then the after-tax cost of debt is: ANSWER 5.2

5) Based on the previous two calculations of cost of equity and cost of debt and a capital structure of 60% equity and 40% debt, the companys WACC is:

6) Now assume a risk-free rate of interest of 4%, an expected rate of return on the global market portfolio of 8% and a global beta of 0.90 then the ICAPM results in a cost of equity of: ANSWER 7.6

7) Based on the previous calculation of cost of debt and the revised calculation of cost of equity and a capital structure of 60% equity and 40% debt, the companys revised WACC is:

THESE QUESTIONS GO TOGETHER, I JUST NEED ANSWERS FOR QUESTIONS 5 & 7.