3. The common stock of Company has a beta of 0.9 The Treasury bil rate is 4%, and the market isk premium is estimated at 8%. Company's capital structure is 30% debt paying a 5% interest rate, and 70% equity. Company pays tax at 40%. 1. What is Company's cost of equity capital? 2. What is its WACC? 3. lfCompany is presented with a normal project with an internal rate of retum of 12%, should it accept the project? 4. The total book value of Company's eq y s $10 million, and book value per share is $20. The stock has a market to book of 1.5 and the cost of equity is 15%. The firm s bonds have aface value of $5 millon and sell at a price of 110% of face value. The yield to maturity on the bonds is 9%, and the firm's tax rate is 40%. Find the company's WACC. 5. Company is afirm with all-equity firanong. Its equity beta is 080. The Treasury bil rate is 4%, and the market nsk premum is expected to be 10%. 1. What is Company's asset bela? 2. What is Company's WACC? 6. The following table presents information for Company. Calculate the company cost of capital. Ignore taxes 300,000 Long-term debt outstanding Current yield to maturity on debt Number of shares of common stock 8% 10,000 $50 Price per share Book value per share Expected rate of return on stock $25 15%