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Adams Inc has a capital structure that consists of 70% common stock and 30% long-term debt. In order to calculate Adams WACC, an analyst has

Adams Inc has a capital structure that consists of 70% common stock and 30% long-term debt. In order to calculate Adams WACC, an analyst has accumulated the following information:

The company currently has 33-year, 8% annual coupon bonds that have a face value of $1,000 and sell for $1,075.

The risk-free rate is 6.50%. The market risk premium is 4%.

The beta on Clarks common stock is 1.1.

The companys tax rate is 38%.

Question: What is the "pre-tax cost of debt", the "after-tax cost of debt", "cost of equity" and "WACC", respectively Group of answer choices

7.39%, 4.54%, 9.65% 9.00%

7.10%, 4.40%, 9.65%, 8.08%

7.32%, 4.54%, 10.65%, 8.82%

7.39%, 4.58%, 10.90%, 9.00%

7.10%, 4.54%, 10.65%, 9.00%

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