Daves Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information. () The firm's noncallable bonds have a yield to maturity of 8%. (2) The company's tax r market risk premium is 5.50%, and the stock's beta is 1.20. (4) Its capital structure includes ate is 40%. (3) The nsk-free rate is 4.50%, the $40 million debt and $10 million comm cost of equity. What is its WACC based on book value? (10 points) on equity. The firm uses the CAPM to estimate the