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Based on the historical data, B Inc. has a beta of 1.5 against the S&P 500 return last ten years, Today, the risk-free rate is

Based on the historical data, B Inc. has a beta of 1.5 against the S&P 500 return last ten years, Today, the risk-free rate is 3.8% (T-Bill), the return on the market portfolio (S&P 500) is 10.8%. Currently, B Inc.s share is sold at $75 and it has 5 million outstanding shares. Also, B Inc. has issued 200,000 10 years semi annual coupon bonds 5% coupon rate last year. Now, its bonds is rated as AAA and it is traded at $1,010 in the market. The companys margin tax rate is 27%. What is B Inc.s after tax WACC?

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