Duratech stock has a beta estimated with a regression over the last 52 weeks = 0.65

Your firm uses the 30 year t-bond YTM as a risk free rate proxy and it equals = 2.5%

Your firm estimates the Market risk premium = 4.8%

Your debt outstanding of $1020 million has a Yield to maturity (YTM) = 2.65%

The current market value of the stock is $7480m

At current market weights the company has 12% debt and 88% equity financing

If you estimate the WACC from these figures based on market weights for % debt and % equity, what is

i. The cost of equity using CAPM (which is how the boss wants it done)

ii. The WACC