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EastWest Company is headquartered in Laval with offices in Halifax, Ottawa, and Toronto. The book value of EastWest's debt is $10million. Currently, the debt is

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EastWest Company is headquartered in Laval with offices in Halifax, Ottawa, and Toronto. The book value of EastWest's debt is $10million. Currently, the debt is trading at 80% of book value and is price to yield 15%. The 2 million outstanding shares of EastWest stock are selling for $25 per share. Eastwest Company has a beta of 1.25. The current risk-free is 9.5%, and the market risk premium (MRP) is 75. The tax rate is 30%. A. What is EastWest's estimated cost of equity? a. 13.00% b.18.25% c.21.45% d. 22.75% B.What is EastWest's estimated weighted average cost of capital (WACC) a. 16.81% B.17.18% c.18.45% D.21.45%

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