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Equity Information 50 million shares; $80 per share; Beta-:1.15; Market risk premium 9% Risk-free rate 5% Debt Information $1 billion in outstanding debt (face value);

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Equity Information 50 million shares; $80 per share; Beta-:1.15; Market risk premium 9% Risk-free rate 5% Debt Information $1 billion in outstanding debt (face value); Current quote 110 Coupon rate 9%, semiannual coupons; 15 years to maturity; Tax rate: 40% 1.What is the cost of equity? 2.What is the cost of debt? 3.What is the after-tax cost of debt? 4.What are the capital structure weights? 5.What is the WACC

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