mathxl.com 4/25/19 11:13 PM FINA 3724 (006) Spring 2019 ulia williams Homework: Chapter 11. Learning Objective 2. Topic Homework 1 Save Score: 0.33 of 1 pt 4 of 4 (4 complete) HW Score: 62.67%, 2.51 of 4 pts Problem 11.L02.23 (similar to) Question Help the order Qinetiq is considering building a new factory. To evaluate the new factory project, Qinetiq needs to estimate its cost of capital. Review the following information and answer the questions that follow to help Qinetiq with its analysls. Debt Number of bonds outstanding300,000 Face value Maturity- Coupons = Market price- Tax rate- Equity Market pice- Shares outstanding- Beta Risk-free rate = Expected return on market S37 6 million 1.22 3% 6% $1,000 6 years 8% paid annually $1,016.28 a. What is the after-tax cost of debt for Qinetiq bonds? b. According to the CAPM, what is the required retum of Qinetiq shareholders? a. What is the after-tax cost of debt for Qinetiq bonds? 5.74 % (Round to two decimal places.) b. According to the CAPM, what is the required retum of Qinetiq shareholders? 6.66 % (Round to two decimal places.) c. What is the weighted average cost of capital (WACC) for Qinetiq? % (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer All parts showing Clear All Check