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Based on the historical data,BInc.has a beta of 1.5 against theS&P500return last ten years, Today, the risk-free rate is 3.8% (T-Bill), the return on the

Based on the historical data,BInc.has a beta of 1.5 against theS&P500return 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 semi annual coupon bonds 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? (25 Marks)

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