Problem 4: The total market value of the common stock of the Company A is $12 million, and the total value of its debt is $8 million. The treasurer estimates that the beta of the stock is currently 0.8 and that the market risk premium is 7%. The Treasury bill rate is 2%. Assume for simplicity that Company A debt is risk-free. The Company's tax rate is 35%. a) What is the pre-tax cost of capital for Company A? b) What is the WACC for Company A