Please Complete all parts of problem #3:

Consider the following information for Clinkle Company:

Stock information:

Stock price: $69

Number of shares outstanding: 18 million

Beta: 1.3

Bond information:

Value of debt: $680 million

Pre-tax cost of debt: 6.6%

Other information

Tax rate: 21%

Government bond interest rate: 3%

Expected return on the S&P 500: 5%

Part 1) What is the cost of equity?

Part 2) What is the weighted average cost of capital?