Assume the equity beta for ABC is 1.22. The yield on 10-year treasuries is 2.8%, and you estimate the market risk premium to be 4.5%. a. estimate ABC cost of equity using the CAPM. b. ABC has outstanding bonds with a coupon rate of 6%, a maturity of 20 years, selling for $1080.5. Coupons are paid annually. what is ABC cost of debt? c. ABC has 20m shares outstanding selling for $112 a share and has issued 2 million bonds. If the tax rate for ABC is 28% what would be ABC WACC.