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

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Ginetic plc makes full body scanners for airport security systems. The Transportation Security Administration (TSA) is considering ordering 100 such machines at a total cost of $20 million. To rump up production for the order Greta is considering building a new factory. To evaluate the new factory project, Oinetig needs to estimate is cost of capital Review the following information and answer the questions that follow to help inel with its analysis Debt Equity Number of bonds outstanding - 150,000 Market price $32 Face value $1.000 Shares outstanding 8 million Maturity 2 years Beta- Coupons 6% paid annually Risk free rate 7% Market price $1,024.91 Expected return on market 125 Tax rate 35% .. What is the whertax cost of debt for Gineti bonds? b. According to the CAPM, what is the required retum of intiq shareholders? a. What is the after-tax cost of debt for Oinetia bonds? % (Round to two decimal places) b. According to the CAPM what is the required return of in shareholders? (Round to two decimal places) 6. What is the weighted average cost of capital (WACC) for ini? [ Round to two decimal places)

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