GreenBud Co.s common stock has a beta of 1.8. If the risk-free rate is 4 percent and the market risk premium is 7 percent, what is GreenBuds cost of equity capital? (Answer: 16.6%) #9. ABC Corporation has 8,000 bonds at the market price of $1,000 per bond and 600,000 shares of common stock outstanding with $20 per share. The companys cost of equity is 14.5 percent, and the after-tax cost of debt is 6.75 percent. What is its WACC? (Answer: 11.4%) steps required