used in the farm tractor industry. At the close of $2019,$ the firm's balance sheet appeared as follows: yield to maturity of $11$ percent, and the firm faces a tax rate of $22$ percent.

a$.$ What is Crawford's weighted average cost of capital?

c$.$ Crawford is considering a new business opportunity involving the acquisition of a trucking firm. What do you think the firm should do to select an appropriate cost of capital for evaluating this acquisition?