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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 Adam's 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 Adam's WACC, an analyst has accumulated the following information:
- The company currently has 13-year, 8% annual coupon bonds that have a face value of $1,000 and sell for $1,075.
- The risk-free rate is 5.25%.
- The market risk premium is 4%.
- The beta on Clark's common stock is 1.1.
- The company's 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
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