Castillo Products Company $($Continued$)$

A$.$ Calculate the net profit margin, total$-$sales$-$to$-$total$-$assets ratio, the equity multiplier, and the return on equity for both $2018$ and $2019$ for the Castillo Products Corporation. Describe what happened in terms of financial pertormance between the two years.

B$.$ Estimate the cost of short$-$term bank loans, long$-$term debt, and common equity capital for the Castillo Products Corporation.

C$.$ Although, Castillo Products paid a low effective tax rate in $2019,$ a $30$ percent income tax rate is considered more appropriate when looking to the future. Estimate the after$-$tax cost of short$-$term bank loans, long$-$term debt, and the venture's common equity.

D$.$ Estimate the weighted average cost of capital $($WACC$)$ for the Castillo Products Corporation using the book values of interest$-$bearing debt and stockholders' equity capital at the end of $2019.$

E$.$ Cindy and Rob estimate that the market value of the common equity in the venture is $$900,000$ at the end of $2019.$ The market values of interest$-$bearing debt are judged to be the same as the recorded book values at the end of $2019.$ Estimate the market value$-$based weighted average cost of capital for Castillo Products.

F$.$ Would you recommend to Cindy and Rob that they use the book value$-$based WACC estimate or the market valuebased WACC estimate for planning purposes? Why?