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Question Completion Status: ou are employed by CGT, a Fortune 500 firm that is a major producer of chemicals and plastics, including plastic grocery bags,

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Question Completion Status: ou are employed by CGT, a Fortune 500 firm that is a major producer of chemicals and plastics, including plastic grocery bags, styrofoam cups, and fertilizers. You are on the corporate staff as an assistant to the CFO. This is a position with high visibility and the opportunity for rapid advancement, providing you make the right decisions. Your boss has asked you to estimate the weighted average cost of capital for the company. The information about CGT follows below. All Data as of 2019 Metric Value Metric Value Beta 0.5 Equity 150,000 Expected Return of the Market 8.00% Preferred Equity 0 6-month Treasury bill 3.00% Short-Term Debt 22,000 Tax Rate 20.00% Long-Term Debt 20,000 You check The Wall Street Journal and see that CGT bonds are selling currently for $1000 per bond. The bonds have a 51,000 par value, a 5% annual coupon rate, semiannual payments are not callable, issued on October 1, 2015, and will expire on October 1, 2035. Questions (2 marks such What is the estimated value of the GGT's after-tax cost of debt? (Rounded to 2 decimal Rounded to the nearest 0.01 What is the estimated value of the GGT's cost of external equity? (Rounded to 2 decimal Rounded to the nearest 0.01) If the Pre-Tex Debt Cost is 5% and the cost of external equity is 12%, what is the estimated value of the GGT's weighted average cost of capital (WACC) for 2019? ((Rounded to 2 decimal Rounded to the nearest 0.01) Assume GGT's marginal tax rate increase to 30.0%. The GGTX adjusted WACC will be increased/decreased/or wachanged! In 2019, GGT announced it would acquire Twenty-First Century Fox assets for $80,000. Assume GGT paid for the acquisition in cash by raising additional debt. The GGT's adjusted WACC will be increased decreased/or unchanged! MacBook Air

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