If Wild Widgets, Inc., were an all-equity company, it would have a beta of 1.85. The company has a target debtequity ratio of .3. The expected return on the market portfolio is 10 percent, and Treasury bills currently yield 6 percent. The company has one bond issue outstanding that matures in 20 years and has a coupon rate of 11 percent. The bond currently sells for $1,280. The corporate tax rate is 34 percent.

a.

What is the companys cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of debt %

b.

What is the companys cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of equity %

c.

What is the companys weighted average cost of capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

WACC %