30. Estimating Weighted Average Cost of Capital Mattel Inc. engages in the design, manufacture, and marketing of various toy products worldwide. At December 31,2018 , Mattel's market value of equity was $3.45 billion, and its total market value was $6.71 billion. Mattel's assumed statutory tax rate was 21%, its average pretax borrowing rate was 5.6%, and its estimated market beta was 2.10. Assume also that the expected risk-free rate is 2.1% and the expected market risk premium is 5%. Required a. What does Mattel's market beta imply about its stock returns? b. Estimate Mattel's cost of debt capital, cost of equity capital, and weighted average cost of capital