Williams construction:

Debt: 12,000 bonds and each sells for $100, with 12 % YTM. The company is in the 30% tax bracket.

Common Equity: 15,000 shares of common stock outstanding, sells for $40/share. The stock's beta is 0.80. The risk-free rate is 2% and the market return is 8%.

1. Based on above, the before-tax cost of debt for Williams Construction is ________. In the 30% tax bracket, then the after-tax cost of debt is _________.

2. CAPM tells you that the cost of equity is ______

3. The capital structure weight is _______ for debt and ______ for common stocks.

4. The WACC (cost of capital) for Williams Construction is ________