Short Answer - 40% of Exam Please complete the questions below. Be sure to show your work if you want to receive any type of partial credit. Each question is worth 10 points for a total of 40 points. 1. To estimate the company's WACC, Scroggs Corporation recently hired you as a consultant. You have obtained the following information. (1) The firm's non-callable bonds mature in 20 years, have an 8.00% annual coupon, a par value of $1,000, and a market price of $1,050.00. (2) The company's tax rate is 40%. (3) The risk-free rate is 4.50%, the market risk premium is 5.50%, and the stock's beta is 1.20 . (4) The target capital structure consists of 35% debt and the remainder is common equity. The firm uses the CAPM to estimate the cost of common stock, and it does not expect to issue any new shares. What is its WACC