ACTS 368: MATHEMATICAL CORPORATE FINANCE II ASSIGNMENT 4 Question One a) A corporate body has a total market value of $10million, the market value of equity is $6million and the company carries debt valued at $4million the before-tax cost of debt is 8 percent and the cost of equity is estimated at 13 percent. the marginal tax rate is 35 percent. estimate the weighted average cost of capital for the company. b) Suppose stock in Antrak Air has a beta of 1.2. The market risk premium is 8 percent, and the risk-free rate is 6 percent. Antrak's last dividend was $2 per share, and the dividend is expected to grow at 8 percent indefinitely. The stock currently sells for $30. What is the lowest and highest estimate of Antrak's cost of equity capital using any two known approaches