P10-7 4 points No credit will be given if work is not A firm has a capital structure containing 60% debt and 40% common stock equity. Its outstanding bonds offer in risk-free rate currently equals 5%, and the expected risk premium on the market portfolio equals 6%. The firm's a. What is the firm's required return on equity? (Show your work. Label %. One decimal place required.) b. Ignoring taxes, use your finding in part (a) to calculate the firm's WACC. (Show your work. Label %. Two c. Assuming a 40% tax rate, recalculate the firm's WACC found in part (b). (Show your work. Label %. Two d. Compare and contrast the values for the firm's WACC found in parts (b) and (c). A 0.05 1.2 0.06 12.20%