9 Assuming a company has a solid credit rating, give two reasons why the cost of debt typically debt is cheaper than the cost of Equity Amt. Cost Your capital stucture is as follows: Tax rate 25% Debt 6% Equity 12% Total Capital 10 What is your aftertax cost of debt ? 11 What is weighted Value of the cost of debt ? 12 What is weighted value of cost of equity ? 1 13 What is your W.A.C.C. 200 400 600 Sum of #11 and #12