A pepitos submits the following information to finance a capital investment: SOURCE AMOUNT RATE Refractive Credit $ 5,500,000.00 12% Avio Credit $ 1,500,000.00 9.0% Factoring $ 1'000,000.00 15.0% Common Shares $ 5,000,000.00 M-MIIC / I The unlevered beta of the company's shares is 1.45. The expected return of the market is 10.0%. The risk-free rate is 4.4% and lastly, the corporate tax rate is 30%. On the other hand, the cost per debt issuance is 8.5% to.

Rate of Return for shareholders (UK) without debt. RU = _________%

b. What will be the Rate of Return on Share Capital Re (Modigliani Miller Model) = __________%

. Calculate the WACC. Using M-M II CI WACC = ________%