. 3. Colfax Inc. manufactures high-end ice cream makers to sell to companies across the globe. The following market data on Colfax are current and available: Debt - 130,000 bonds outstanding, selling for 104 percent of par; the bonds have a YTM of 4.5%. The par value is $1,000 Common stock - 9,900,000 shares outstanding, selling for $68 per share the beta is 1.20. Market - 7 percent expected market risk premium; 3.1 percent risk-free rate, Tax - 34% Calculate the cost of equity. Show your complete work and present your answer in % rounded to two decimal places (e.g. 12.34%). 7pts. . a b Calculate the WACC Present your answer as rounded to two decimal places (eg, 12.349). Show your complete work and present your answer in rounded to two decimal places (ex. 12.4%), 8 pts. c. Suppose Pullman Inc, Colfax's biggest competitor, has a debt-to-equity ratio of 3 but its costs of debt and equity are identical to those of Colfax's Using 34% as the tax rate, calculate Pullman's WACC. Show your complete work and present your answer in wunded to two decimal places (eg, 12.34%). 7 pts. d. Based on your answer in 3.c, is Pullman's WACC higher or lower than Colfax' WACC? Explain why it is higher/lower with supporting logic/intuition/theory 5pts