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The Board of Herminia Industries has asked you to review its financials and assess the company's capital structure. Data that is provided to you can

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The Board of Herminia Industries has asked you to review its financials and assess the company's capital structure. Data that is provided to you can be used to determine the company's WACC [weighted average cost of capital). The company's debt/equity mix is (Select ] The company's WACC is (Select] [Select) %. 0.60 0.375 0.75 1.67 0.632 Current stock price # shares outstanding $12.50 1,000,000 Face value of debt $7,500,000 97% of face 6.5% 2% Recently quoted price on debt Current yield to maturity on debt Risk free rate Herminia stock beta Market risk premium Corporate tax rate 1.10 8% 22%

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