an express dog food delivery service based in Frankfurt is considering changing its capital structure.

its current capital structure is as follows:

it has 2,000 5% annual coupon 10 year bonds outstanding which currently trade at 85. The book value for these bonds is $ 2.0 million.

its common stock sells at $20 per share with 200,000 shares issued and outstanding. Its par value is $ 5 per share and 400,000 shares are armortized. its common stock has a book value of $ 23 per share.

it has a current beta of 0.8. The risk rate is 4.5% , the market rate of return is 11%.

there is no preferred stock.

it is subject to a 40% marginal income tax rate

a. what is the after tax cost of debt?

b. what is the current cost of equity?

c. what is its total capital in dollars? what are the weightings of debt and equity to its total capital?

d. what is its current WACC