QUESTION 5 Given the information below, compute the aftertax WACC for Tiny Corp.Tiny Corp, - Tiny Corp long term debentures were issued last week at par value of $30 000 000 with a yield of 8% (annual coupons) - Tiny Corp has 50,000,000 shares outstanding. Each share is expected to pay a dividend of $0.50 in perpetuity at 4%. - The beta (b) of Tiny Corp shares is 0.75 - The expected return on the market portfolio is 15% - The risk-free rate is 5% - The tax rate is 30% 8.00% m 11.86% A 13.07% A 10.91% QUESTION 3 What is the weighted-average cost of capital for the following rm that exists in a tax-free environment?: Market Value of Debt = $30,000 Number of Shares = 6,000 Share Price = $15.60 Beta = 15 Risk-free rate = 4% Market Risk Premium = 4% Interest Rate on Debt = 8% (annualised) A 1.! 9.51% A t , I 8.93% 0 4.97% A 14.06%