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AYY Inc. has a debt outstanding with a market value of $6,000,000 and 170,000 common shares currently trading at $42 each. The firm has a

AYY Inc. has a debt outstanding with a market value of $6,000,000 and 170,000 common shares currently trading at $42 each. The firm has a tax rate of 0.36. The yield on the debt is 6% per annum. AYY's beta is 1, the risk-free rate is 1.4%, and the expected return on the market is 9%. (PLEASE PROVIDE 2 DECIMAL POINTS FOR EACH ANSWER)

a. What is the weight of equity?

b. What is the cost of equity according to CAPM?

c. What is the after-tax cost of debt?

d. What is the weighted average cost of capital?

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