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Company A has a %21 tax rate . it has issued 20,000 shares of common stock and has equity of 900,000$. In addition the corporation

Company A has a %21 tax rate . it has issued 20,000 shares of common stock and has equity of 900,000$. In addition the corporation has dept at a before tax rate of 5,25% in amounts as shown below on the relevant portion of the balance sheet.Further assumes the copmpanys beta is1.2.10- years us treusiers carry a rate of 0,98, and our analysis estimate a market return of 11.8%

Account payable 20,000

Note Payabale 10,000

Accruals 16,000

Cuurent Portion of long trem debt 27,260

Totatl Current Liabilities 73,260

Long Term Debts 568,334

Total Liabilities 641,594

Calculate the cost of capital using WAAC .Remember to use after tax values .Show your work

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