You are employed by CGT, a Fortune 500 firm that is a major producer of c plastics, including plastic grocery bags, styrofoam cups, and fertilizers. You are corporate staff as an assistant to the CFO. This is a position with high visibility and the opportunity for rapid advancement, providing you make the right decisions. Your boss has asked you to estimate the weighted average cost of capital for the company. The balance sheet and some other information about CGT follows below hemicals and Assets Current assets Net plant, property, and equipment Total assets $38,000,000 101,000,000 $139,000,000 Liabilities and equity Accounts payable Accruals Current liabilities Long term debt (bonds) Total liabilities Common stock Retained earnings Total shareholders equity Total liabilities and shareholders equity $ 10,000,000 9.000 S19,000,000 40.000 59,000,000 30,000 50.000.000 80,000,000 $139,000.000 You check The Wall Street Journal and see that CGT stock is currently selling for $4.50 per share and that CGT bonds are selling for $875.00 per bond. The bonds have a $1,000 par value, a 5.25% annual coupon rate, semiannual issued on October 1, 2015 and will expire on October 1, 2035. The book value per share is $3. The yield on a 6-month Treasury bill is 1.50%. CGT is in the 30% tax bracket The annual rate of return for CGG and stock market are given in the below table. are not callable Year GTT stock market 2010 0.0586 0.0556 2011 0.224 0.061052632 2012-0.27070.079365079 2013 0.006 0.182904412 2014-0.0684 0.170940171 20150.33870.142003981 2016-0.0928-0.04706566 1. Estimate the GGT's after-tax cost of debt. 2. Estimate the GGT's cost of external equity 3. Estimate the GGT's cost of capital. 4. Can you assume that the cost of capital would remain constant with using more debt? Please Explain