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Xiaomi Inc is a firm that specializes in smart phone business. Xiaomi has a stock price of $25 per share with 10 million shares outstanding.

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Xiaomi Inc is a firm that specializes in smart phone business. Xiaomi has a stock price of $25 per share with 10 million shares outstanding. Xiaomi's equity beta is 1.2. It also has $200 million in debt outstanding with a debt beta of 0.1. Suppose the risk- free rate is 3%, and the market risk premium is 6%. a. What is the weighted average cost of capital of Xiaomi? b. What is the asset beta of Xiaomi

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