Problem5 Formulas of Interest: WACC- weighted average of all source of funds in relation to interest rate paid A Publicly traded company has issued $50M worth of stocks. The stock holders expect a rate of 10% worth The 2M The company has sold bonds worth S20M at a rate of 6% compounded yearly Problem 5-1 Determine the before tax cost of capital for the company D. None of these A. 10.63% C. 10.24% B. 9.32% 10to Somi i Problem 5-2 What is the after-tax cost of capital if the company is in the 34% income tax bracket. D. None of these C. 7.02% B. 6.2% A. 9.25%