Part I: WACC Use this information to answer questions 1-8 Suppose Intel wants to raise capital to start a new project to bring their manufacturing process back to the U.S. The pandemic has shown them that they cannot rely on a foreign supplier. The CEO asks you to calculate their weighted average cost of capital. He gives you these facts. Tax rate = 12.5% Intel has the following bonds all have a face value of $1,000: 5-year, 4.6% coupon, semiannual payment non-callable bonds with a price of $1,016. 20 year, 6.2% coupon semiannual payment callable bonds with a price of $1,035. And 20 year, 5.9% coupon semiannual payment non-callable bonds with a price of $1,018. New bonds will be privately placed with no flotation cost. Intel has preferred stock that sells for $125.00. It pays an annual dividend of $4.67. Their common stock sells for $59.26. The annual dividend is $132 and the dividend growth rate is 2.4% a year. The stock has a Beta of 80. The risk free rate is 1% and the market risk premium is 4.6% Intel considers their bond-Yield Risk Premium to be 3%. Intel currently has 30% of their capital coming from debt, 20% from preferred stock and 50% from common equity, however their target is to have 38% from debt, 18% from preferred stock and 44% from common equity. What is the after-tax cost of debt for Intel? OA. 5.03% OB.5.17% O C. 6.63% OD.2.21% QUESTION 4 What is Intel's cost of preferred stock? O A. 26.76% OB. 16.23% O C.7.16% OD.3.74%