Jacks Pty Ltd (ASX Listed Firm) provides mechanical services to the customers.  Table below shows an extract of its balance sheet as at 30 June 2020: 

Jacks Balance Sheet as at 30 June 2020 (Extract)
	Book Value $	Market Value $
Short Term Notes (15% interest)	5,000,0000	6,000,000
Long Term Notes (10% interest)	2,000,000	3,000,000
Share Capital	1,000,000	5,000,000

 

1.  Calculate cost of equity using CAPM if beta firm is 1.70, risk free rate 4.8%, and market risk premium is 5%. Round to two decimals.

2.  How much is WACC with 30% tax rate? Hint: capital structure comprises of one equity and two debts components. Round to two decimals.