QUESTION 7 The Cypress Company's cost of retained earnings (Rs or is) is currently 19%, their cost of external equity (Re or le) is 22%, and their bond's carry a coupon rate of 8% and a current yield to maturity of 12%. Their average tax rate is 30 percent. Their book value and market value are the same. Using the following balance sheet: Assets Liabilities Cash $ 3,000 Account payable $ 2,000 Accts Receivable 3,000 Inventories 4,000 Long-term debt 15,000 Plant and Equipment, net 12,000 Common Equity (500 shares) 5,000 Total Liabilities & Total Assets $22,000 Equity $ 22,000 Calculate the company's after-tax weighted average cost of capital using retained earnings: TTT Arial 3 (12pt) T E 50'S Path: P Words:0