a. 8. GenCorp, an automotive parts manufacturer, currently has $25 million in outstanding debt and has 10 million shares outstanding. The book value per share is $10, and the market price per share is $25. The company is cur- 1 rently rated A, its bonds have a yield to maturity of 10%, and the current beta of the stock is 1.06. The risk-free rate aris 8% now, and the company's tax is 40%. What is the company's current weighted average cost of capital? b. The company is considering a repurchase of 4 mil- lion shares at $25 per share with new debt. It is estimated that this will push the company's rating down to a B (with a yield to maturity of 13%). What will the company's WACC be after the stock repur- chase? a. 8. GenCorp, an automotive parts manufacturer, currently has $25 million in outstanding debt and has 10 million shares outstanding. The book value per share is $10, and the market price per share is $25. The company is cur- 1 rently rated A, its bonds have a yield to maturity of 10%, and the current beta of the stock is 1.06. The risk-free rate aris 8% now, and the company's tax is 40%. What is the company's current weighted average cost of capital? b. The company is considering a repurchase of 4 mil- lion shares at $25 per share with new debt. It is estimated that this will push the company's rating down to a B (with a yield to maturity of 13%). What will the company's WACC be after the stock repur- chase