Risk-free rate = 0.016 Market rate = 0.136 Tax rate = 0.30 A firm's capital structure consists of a $15 million loan with an interest rate of 5.5%, an $18 million bond issue rated BBB, and 10 million shares of common stock currently selling at $4.75 a share. The stock's beta is 1.20. 1. What is this firm's after-tax weighted average cost of debt? 2. What is this firm's cost of equity? 3. What percentages do debt and equity add to the firm's capital structure? 4. What is this firm's WACC? 5. One of your colleagues has suggested the firm undertake a project with an 8.55% return. Should you agree with your colleague? Justify your answer.