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Data table (Weighted average cost of capital) ABBC ine. oparales a very successful chain of yogut and cotfee shops spread across the southwestem part of

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Data table (Weighted average cost of capital) ABBC ine. oparales a very successful chain of yogut and cotfee shops spread across the southwestem part of the Unitod States and needs to raise funds for its planned expansion into the Northwest. The firm's balance sheet at the dose of 2019 appetared as follows : At present, the firm's common stock is solling for a price equal to 3 times its book value, and the firm's investors require a return of 15 percent. The trm's bonds command a yield to maturity of 9 percont, and the firm faces a tax rate of 23 percont. At the end of the previous yoar, ABBC a bonds wore trading rear their par valuen. a. What does ABBC cis cipltal structire look like? b. What is ABBC s woighted average coat of capital? c. II ABBC's stock price were to rise such that it toid at 3.5 imen its book walue and the cosi of equity fol to 12 percent, what would the firmht weghtod avoragen coot of capital be (asseming the cost of dobt and tax rate do not chango)? to sell thin stores to a real estate imestor with an agreament to lease them back (ie., fent them)

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