3. FINA Inc has a policy of maintaining at least $60,000 in cash in their checking account, to reduce risk and maintain a favorable Current Ratio, as that is considered important to their investors. They earn 1% annual interest on the funds in their checking account. This year, they financed $12 million in working capital at a short term cost of debt of 6%. What is the cost to finance the cash in their checking account?

4. FINA Inc, a corporation operating in the United States, pays a market interest rate on its debt of 5% annually. This year, the CFO has decided to raise operating capital using 85% debt and 15% equity. The cost of equity is estimated at 8%. Calculate FINA Incs 2021 WACC.