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Ginetia ple makes full body scarners for airport security systems. The Transportation Security Administration (TSA) is considering ordering 100 such machines at a total cost

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Ginetia ple makes full body scarners for airport security systems. The Transportation Security Administration (TSA) is considering ordering 100 such machines at a total cost of $20 million. To ramp up production for the order Gineia is considering building a new factory. To evaluate the new factory project, Cintiq needs to estimate its cost of capital Review the following information and answer the questions that follow to help inel with is analysis Debt Equity Number of bonds outstanding 150,000 Marrio Face value $1,000 Share outstanding Bmilion Maturity Beta 1.15 Coupons 6% paid annually Risk-freemale Market price $1,02491 Expected retum on market 12% Tax rate What is the worlax cost of debt for inelig bonds? b. According to the CAPM, what is the required retum of net shareholders? .. What is the worlax cost of debt for inte bordu?

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