Mighty Corporation is a large cigarette manufacture based in the Philippines. Suppose that Mighty Corporation is interested in establishing a presence in the United States through a subsidiary three years from now and approaches Wells Fargo for assistance estimating their future cost of capital. Use the following information to calculate Mighty Corporations expected cost of equity, cost of debt, and WACC. Show your work and define any abbreviations used. Risk-free interest rate Average equity market return Estimated cost of debt Estimated correlation of Mighty Corporation with market Estimated standard deviation of Mighty Corporation's returns Estimated standard deviation of market returns Recommended debt-to-capital structure Recommended equity-to-capital structure Estimated effective U.S. tax rate 3% 10% 8% 0.75 30% 20% 45% 5596 35%