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8B10. KRC has 200,000 bonds and 32 million shares outstanding. The bonds have a 7% coupon, $1.000 face value, $869 market value, and 14-year maturity.

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8B10. KRC has 200,000 bonds and 32 million shares outstanding. The bonds have a 7% coupon, $1.000 face value, $869 market value, and 14-year maturity. The beta on the stock is 1.45 and its price per share is $27. The riskless return is 4%, the expected market return is 12%, and the firm's tax rate is 40%. A. what is the after-tax cost of debt financing? B. What is the after-tax cost of equity financing? C. What is the WACC

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