Wack-A-Wale Unlimited would like to evaluate its rew project Here's the information known about the project It will be a 6year project The company is in 28% tax bracket for all purposes The initial investment will equal $1,000,000 Every year the after tax cash flow wil ecual $130,000 ir ne loan is used Equity Beta equals 1.3 Cost of deb + Required return on equity equals 11.35 if loan is used An interest-only riskless loan will cover 20% of the initial investment Here's additional information about the market: Treasury bil rate is a proxy for the riskless asset, and the annual rate equals 3.9% Expected retum an the market portfolio equals 9.59 HINT #1: You will not need to use some of the numbers that are given in this problem. HINT #2: If needed for debt-to-equity ratio calculations, use the easier debt-to-BOOK-value-al-equity method rather than the harder debt-to-MARKET-value-of-equity method. Wick-A-Mole United company would like to use the weighted Average cost of Capital (WACC) approach to evaluate this project which it wil finance with both equity and debt in the table below, fill out the WACC values! weight of levered equity X Cost of levered equity (1 TC X weight of debt + : 1.-5.50 1 -- 304 2.-7.90 1-30% 2 - 354 2 --- 35+ 3 - 8.30N 3404 340 4 - 10.00 4 - 454 12-29 4.455 5- 10,50N 5 - 50% 3 -- 3046 5 --- 50 6--11.044 6 -- 554 4 -- 3896 7.11.04 6 -55 7 - GUN S- 4096 7-- 8--124114 8.65 9 --- 70% 9... 70 10 - 19.91 1.-30 2 - 3.50 3-4.00% 4.-4.504 5.-5.00 6 -- 5.505 9--1337 The numeric answer for WACC is From the table below, pick a number that corresponds to your answer: 11 3 14 5 5.72% 7.14% 8.70% 9.125 10.01