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The Beta Corporation has an optimal debt ratio of 4 0 percent. Its cost of equity capital is 1 2 percent, and its before -

The Beta Corporation has an optimal debt ratio of 40 percent. Its cost of equity capital is 12 percent, and
its before-tax borrowing rate is 8 percent. Given a marginal tax rate of 30 percent.
Required:
a. Calculate the weighted-average cost of capital.
b. Calculate the cost of equity for an equivalent all-equity financed firm.
Complete this question by entering your answers in the tabs below.
Required A
Calculate the weighted-average cost of capital.
Note: Do not round intermediate calculations. Round your answer as a percent rounded to 2 decimal places.
Weighted-average cost of capital
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