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(A) Please calculate the Weighted Average Cost of Capital (WACC) for the following company. Assumptions: Risk free rate = 4.0%; Companys spread = 2.0%; Expected

(A) Please calculate the Weighted Average Cost of Capital (WACC) for the following company. Assumptions: Risk free rate = 4.0%; Companys spread = 2.0%; Expected return of the market = 9.0%; Company Beta = 1.10; Company debt to capitalization ratio = 40%; and Company tax rate = 30%. (Please be sure to show your calculations.)

(B) Please define and explain the Hurdle Rate. (3 points)

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