QP13.2 (Required for Submission) 2. WACC. Here is some information about Stokenchurch Inc.: Beta of common stock = 1.2 Treasury bill rate 4% Market risk premium = 7.5% Yield to maturity on long-term debt = 6% Book value of equity = $440 million Market value of equity $880 million Long-term debt outstanding = $880 million Corporate tax rate = = 21% What is the company's WACC? (L013-1) QP13.20 (Required for Submission) 20. Cost of Debt. Micro Spinoffs Inc. issued 20-year debt a year ago at par value with a coupon rate of 8%, paid annually. Today, the debt is selling at $1,050. If the firm's tax bracket is 21%, what is its percentage cost of debt? (L013-4)