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Collins Group The Coilins Group, a leading producer of custom automobile.accessories, has hired you to estimate the firmis weighted average cost of capital. The balance

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Collins Group The Coilins Group, a leading producer of custom automobile.accessories, has hired you to estimate the firmis weighted average cost of capital. The balance sheet and same other information are provided below. The stock is currenty sellie0 for $15.25 per share, and its noncallable $1,000 par value, 20 -yeag, 7.25% bonds with semiannual payments are seting for $375.00. The beta is 1.25, the yield on a 6-month Treasury bill is 3.50\%, and the yeld on a 20-yesr Treasury bond is 5.50%. The required return on the stock market is 11.50%, but the market has had an average annual return of 14.50% during the past 5 years. The firm's tax rate is 25%. luter to the data for the Colins Group. What is the best esturate of the firms wMCC? 1. 12.13% 3. 12.4046 C. 11.42% d. 11.77\% 1. 11.08%

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