(Weighted average cost of capita) Craword Enterprises is a publicly held osmpany located in Amold, Kaneas. The firm began as a smuall todl ard die ahop but grew over its 35 -year lifo to become a leading supplier of motal fabrication equipment used in the farm tractor industry. At the close of 2015 , the firmis balinco shoel appeared as foliows: At present the firm's common stock is selling for a price equal to its book value, and the firmis bonds are selling at par: Cramfords manigers estimate that the market requires a return of 17 percent on its common stock, the firm's bonds command a yield to maturify of 8 percent, and the firm facos a tax rate or 38 percent a. What is Crawlord's weighted average cost of capitar? b. If Crawhord's stock price were to rise such that it sold at 1.5 times book value, causing the cost of equily to falt to 15 parcent, what woudd the fimre cost of captai be (assuming the cost of debt and tax rade do not chango)? a. What is Crawfords weighted average cost of caphal? is (Round to two decimat places ) (assuming the oost of debt and tax rate do not change)? (Round to two decimal places) Data table what would the firm's cosh (Woighted average cost of capirad Crawtord Enterprisos is a publicly held compary located in Amold, Kansas. Thio fim bogan as a small tool and dio shop but grew over its 35-year lfe to becomo a leading supplier of metal fabrication equipment usod in the farm tractor industry Al the close of 2015 , the farmis balance shoe? appeared as followis: At present the firmis common stock is soiling for a price equal to its book value, and the firmis bonds are selling of par, Crowdords managors osfirnate that the market, requires a return of 17 percent on its common stock, tho firmis bonds comenand a yiefd to matiarty of be percent, and the firm faces a tax rate of 38 priecent. a. What is Crawfords woighted awerage cost of capilal? b. If Crawford's stock price wore to rise such that it sold at 1.5 timos bock value; causing the cost of equelty to tall to is porcect, what woeld the firmis cost of capdal be (assuming the cost of debt and tax reter do not change)? a. What is Crawtorfs weighted averago cost of capital? 4. (Round to two decimal places.) b. It Crawhed's stock price wore to rises such that if soid at 1.5 times book walue, causing the cost of equity to fal to 15 porcert, what wonld the fartis cost af captal be (assuming the cost of debt and tax rate do not chango)? (Round to hwo decimal phaces.)