GIVEN ABOUT THE MARKET: - T-bill return is 3.6% annually. - The expected annual return on the market portfolio equals 11%. GIVEN ABOUT THE "GAMMA CORPORATION": - Gamma Corporation's capital structure is levered. (If Gamma Corporation was not levered, its equity Beta would have been .90.) - Gamma Corporation would like to maintain a target debt-to-equity ratio of 75 which is its current level. - Gamma Corporation has debt in the form of corporate bonds. The bonds mature in 20 years, each bond has a $1,000 par value, and the coupon rate of 6.5%. The bonds require that the coupons are made semiannually until the bonds mature. Each bond can be traded for $1,075 in today's economy. - Gamma Corporation faces a 23% tax rate on its taxable income. a. Gamma Corporation's cost of debt (HINT: "annual yield to maturity"!) is : (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Gamma Corporation's cost of equity is : (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. Gamma Corporation's WACC is __ (TIP: if you are unsure how to use the information on "debt-to-equity ratio" to calculate "weight of debt" and "weight of equity", you can watch my short video https://youtu.be/BAipMtb6N9k) : (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)