SUNOCO Products has 180,000 shares of common stock outstanding at a market price of $37 a share. The company has $3,500,000 of face value of bonds outstanding selling at 98.2 percent of face value. The firm has no Preferred Shares outstanding. The market risk premium is 8.25 percent, the risk-free interest rate is 2.5 percent, and the tax rate is 21 percent. The beta of the firm's common share is equal to 1.24. The BEFORE TAX Cost of debt of the firm is equal to 8.5 percent. Find the Capital Structure Weight (1), the firm's Cost of Equity using CAPM (2), and the firm's WACC (3). Common Shares Outstanding Price per Common Share 180,000 37.00 $ $ Bonds Outstanding Price bond Now (% Face Value) 3,500,000.00 98.2 Find the Capital Structure Weight (1) Market Value Common Equity (E) Market Value of Common Debt (D) Market Value Assets (V) Weight Common Equity (We) Weight Debt (Wd) Find the Firm's Cost of Equity (2) Stock's Beta Market Risk Premium Risk-Free Rate Cost of Common Equity 1.24 8.25% 2.50% 21.00% 8.50% Find the Firm's WACC Tax Before Tax Cost of Debt After Tax cost of Debt Cost of Equity WACC Found above