Question 17)	Good Finance LLC has 200,000 shares of common stock outstanding at a market price of $40 a share. The company has $4,000,000 of face value of bonds outstanding selling at 95 percent of face value. The firm has no Preferred Shares outstanding. The market risk premium is 8.5 percent, the risk-free interest rate is 3.0 percent, and the tax rate is 24 percent. The beta of the firm's common share is equal to 1.75. The BEFORE TAX Cost of debt of the firm is equal to 10 percent. Find the Capital Structure Weight (1), the firm's Cost of Equity using CAPM (2), and the firm's WACC (3).
(5 Points)
Weight Common Equity (We)
Weight Debt (Wd)
Find the Firm's Cost of Equity (2)
Stock's Beta	1.75
Market Risk Premium	8.50%
Risk-Free Rate	3.00%
Cost of Common Equity
Find the Firm's WACC
Tax	24.00%
Before Tax Cost of Debt	10.00%
After Tax cost of Debt
Cost of Equity
WACC