Estimate the weighted average cost of capital for CMC Bank using your estimated beta and the information in the problem statement in Problem 13.36? Assume that the average and marginal tax rates for CMC Bank are both 25 percent.

Marginal and Average tax rate =			25.00%		%debt	35.00%
Risk free rate =			3.95%		%cs	65.00%
Beta of cs =			1.15		pretax cost of debt	5.45%
Risk Premium =			6.01%

Expected Return on cs = Rrf + Beta of cs[Risk Premium]
Expected Return on cs =
The weighted average cost of capital is:
		WACC =