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help need assistance with this questions as soon as possible Assume that you have been hired as a consultant by CGT, a major producer of

help need assistance with this questions as soon as possible

image text in transcribed Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including plastic grocery bags, styrofoam cups, and fertilizers, to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below. The stock is currently selling for $15.25 per share, and total outstanding shares are 10,000,000 . Its noncallable $1,000 par value, 20-year, 7.25% bonds with semiannual payments are selling for $875.00. The beta is 1.25, the risk free rate is 5.5%.The required return on the stock market is 11.50%. The firm's tax rate is 40%. The total debt value is $35,000,000. A. What is the best estimate of the after-tax cost of debt? B. Based on the CAPM, what is the firm's cost of equity? C. Which of the following is the best estimate for the weight of debt for use in calculating the WACC? D. What is the best estimate of the firm's WACC

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