Need both A and B

Corcovado Pharmaceuticals. Corcovado Pharmaceutical's cost of debt is 6.90%. The risk-free rate of interest is 3.00%. The expected retum on the market portfolio is 8.50%. Corcovado's effective tax rate is 25%. Its optimal capital structure is 35% debt and 65% equity. a. If Corcovado's beta estimated at 1.40, what is its weighted average cost of capital? b. If Corcovado's beta estimated at 0.90, significantly lower because of the continuing profit prospects in the global pharma sector, what is its weighted average cost of capital? a. If Corcovado's beta estimated at 1.40, what is its weighted average cost of capital? % (Round to two decimal places.) Help me solve this View an example Get more help Clear all Check