Calculate the weighted average cost of capital for the following firm assuming Fama-French 3 factor model (market factor risk premium = 7%; size factor risk premium = 3.7%; and book-to-market factor risk premium = 5.2%. ): The project they are undertaking is long term. The long term government bond rate is 15%. The shortest term government bond rate is 10%. The bond risk premium for a similar grade company is roughly 2.5% The coupon rate is 10% Yield to maturity is 11% The following data is given for a stock: beta (market) = 1.5; beta (size) = 0.3; beta (book-to-market) = 1.1; Corresponding industry betas are 2, 0.5, and 1.7. A very similar firms betas are 1.7, .06, and 1.3. The market value of equity is 10B. The book value of equity is 12B. Average of book and market value of equity is 11B The market value of debt is 10 B. The book value of debt is 15 B. Average of book and market value of equity is 12.5B Corporate Tax Rate is 20% What is return on debt? What is return on equity? What is WACC? Show your calculations and explain why you choose a particular measure in any of your calculations.