Corcovado Pharmaceuticals. Corcovado Pharmaceutical's cost of debt is .00%, The risk-free rate of interest s 3.00%. The expected eam on the market portfolio S 7 8.00%. Corcovado's effective tax rate is 25%. Its optimal capital structure is 60% debt and 40% equity. a. If Corcovado's beta is estimated at 1.10, what is its weighted average cost of capital? of capital? ing profit prospects in the globail energy sector, what is its weighted average cost