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Equity Information Debt Information 50 Million Shares 1 Billion in outstanding debt 80 per share Current Quote 110 Beta 1.5 Coupon Rate 9% (semi-annual) Market

Equity Information Debt Information
50 Million Shares 1 Billion in outstanding debt
80 per share Current Quote 110
Beta 1.5 Coupon Rate 9% (semi-annual)
Market Risk Premium 9% 15 years to maturity
Risk Free Rate 5% Tax Rate is 40%

What is the cost of equity? What is the cost of debt? What is the after-tax cost of debt?

What are the capital structure weights? What is the WACC?

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