Use the information to answer the following questions. The XXX Company has a marginal tax rate of 40%. The company can issue new bonds at par that would provide a 8.5% YTM. The firms beta is 0.7, the T-bill rate is 5%, and the market return is 12%. The firms long-term debt currently sells at par value for $3,000. The firm has 100 shares of common stock outstanding that sell for $10 per share.

What is XXX's cost of common stock?

What is XXXs capital structure based on market weights?

.What is the firm's weighted average cost of capital?