The stock is currently selling for $$15\mathrm{.}25$ per share, and its

noncallable $$1,000$ par value, $20-$year, $7\mathrm{.}25\%$ bonds with semiannual

payments are selling for $$875\mathrm{.}00.$ The beta is $1\mathrm{.}25,$ the yield on a

$6-$month Treasury bill is $3\mathrm{.}50\%,$ and the yield on a $20-$year Treasury

bond is $5\mathrm{.}50\%.$ The required return on the stock market $($i$.$e$.,$ Rm$)$is

$11\mathrm{.}50\%.$ The firm's tax rate is $40\%.1)$ What is the best estimate of the after$-$tax cost of debt

$(\%)?$ i$.$e$,(1-$t$)*$kd$?2)$ Based on the CAPM, what is the firm's cost of equity $(\%)?$

i$.$e$.,$ ke$?3)$ Calculate the weights of market value of debt and market

value of equity for use in calculating the WACC based in market

values? i$.$e$.,$ Wd $(\%)$ and We $(\%)4)$ Calculate ABC's WACC $(\%)$ based on your answers to $1),2),$ and

$3)$Show all of your calculations with appropriate explanation. You

won't earn any point without showing allof your calculation

work.$$