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Question 13 Use the below information for this problem Debt Rating AAA A BBB BB B CCC Average Debt Beta 0.05 0.05 0.05 0.10 0.17

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Question 13 Use the below information for this problem Debt Rating AAA A BBB BB B CCC Average Debt Beta 0.05 0.05 0.05 0.10 0.17 0.26 0.31 10 million $400 Number of equity shares outstanding Current equity share price Short term debt on balance sheet Long term debt on balance sheet Equity on balance sheet Number of bonds issued Current price for each bond Coupon Rate of Bonds Yield to maturity of bonds Bonds Rating Tax rate 0 2,000 1,500 20 million 90 6% 5.20% B 35% Suppose the risk-free rate is 2% and expected market return is 6%, then the firm's WACC minus asset cost of capital equals % Instruction: Type ONLY your numerical answer in the unit of percentage. % sign is already there. Round to the nearest two decimal places. E.g., if your answer is 10.136%, then input 10.14

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