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please solve this problem without using Excel and show all steps. no more information to add 2. Company XYZ uses the FFC model to calculate

please solve this problem without using Excel and show all steps. image text in transcribed
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2. Company XYZ uses the FFC model to calculate the cost of capital. You are given the following factor betas and annual rates of return: Factor MKT HML SMB PRIYR Beta 0.88 0.21 -0.44 0.05 Rate of Return 0.07 0.03 0.02 0.04 The annual risk free rate is 0.04. Calculate the annual cost of capital

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