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The required rate of return on the bonds (k d ) of the EAP Corporation is 18 percent. The firm's rate of return on stocks

The required rate of return on the bonds (k_d) of the EAP Corporation is 18 percent.

The firm's rate of return on stocks (k_cs) in general is 12 percent.

The firm IS NOT USING PREFERRED STOCK to finance its operations (0% preferred stock financing).

If the firm's marginal tax rate is 32 percent, and it will be financing projects with a 45%-55% debt to equity mix, find its weighted average cost of capital (WACC).

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