3 Following is the balance sheet for Goldsmith Inc. 4 5 6 7 8 Cash 9 Accounts Receivable Goldsmith Inc. Balance Sheet as at December 31, 10 Inventories 11 Total Current Assets 12 13 Plat Assets, Net 14 Total Assets 15 16 Accounts Payable 17 Accrued Liabilities 18 Total Current Liabilities 19 Long Term Debt 20 Total Stockholders' Equity 21 Total Liabilities & Equity 22 2020 2019 3,146 2,858 2,776 2,592 10,036 8,814 15,958 14,264 28,974 26,250 44,932 40,514 2,382 1,999 1,940 1,790 4,322 3,789 10,234 8,093 30,376 28,632 44,932 40,514 23 The company has pre-tax interest expense of $750 and a statutory tax rate of 30%. 24 Your online investigation reveals that the company has a beta of 1.4. 25 Assume that the risk free rate in 2020 is 3.5% and the market risk premium is 6%. 26 27 Pre-tax Interest Expense 28 Statutory Tax Rate 29 Beta 30 Risk free Rate 31 Market Risk Premium 32 750 30.0% 1.4 3.5% 6.0% 33 34 Calculate the company's Weighted Average Cost of Capital. Show your calculations for each component of the calculation. 35