Emrem Co. common stock has a beta value of 0.8, the risk free rate is 2.45% while the market portfolio risk premium has been calculated at 6.25%. Calcualte the cost of equity. Beta Risk free rate Market portfolio risk premium Cost of equity The capital structure of Emrem Co. is comprised of 15% preferred stock, 30% debt, and 55% common stock. The required return for the preferred stock is 15%. The company has a tax rate of 22%. Use this information to calculate the WACC for Emrem Co. Tax rate Cost of debt After tax cost of debt Weight Required return Debt Preferred stock Common equity WACC