You are estimating the weighted average cost of capital (WACC) for your company based on the following information: Equity information Debt information 40 million common shares outstanding $1 billion of debt at face value $60 market price per share Debt quoted price = 120 Stock beta of 1.50 Coupon rate = 7%, semi-annual Market risk premium of 8% 10 years to maturity Risk-free rate of 5% Marginal tax rate of 30% Calculate the following returns: (1/100 of one percent without % sign, e.g. 12.671, if a negative percentage, -9.56) 1. Cost of equity (%): 9.5 2. Cost of debt (%): 3. Proportion of debt (%): 4. Proportion of equity (%): 5. Weighted average cost of capital (%): Please answer all parts of the question a Your company has a semi annual bond issue outstanding that matures in 7 years. The bond is quoted at 101.4 percent and coupon rate of 8%. What is the firm's after tax cost of debt if the tax rate is 30 percent? Calculate the following returns: (1/100 of one percent without % sign, e.g. 12.671, if a negative percentage, -9.56): 1) Cost of debt