You need to calculate the ABC Corporation's cost of debt, cost of equity, and WACC. Here's what's known: ABOUT THE MARKET: The expected return on the market portfolio is 10 percent. Treasury bills offer a 3.8 percent annual return. ABOUT THE "ABC CORPORATION": It's a levered firm. (If it did not have debt, the Beta of its equity would have been 1.05.) Its target debt-to-equity ratio is .40 and it would like to maintain this ratio in the future. This firm has debt that matures in 22 years, has a $1,000 par value (per bond), and the coupon rate of 6.7 percent. Semiannual coupon payments are required until the debt matures. Today's price of each bond is $1,085. The firm pays taxes according to an income tax rate of 25 percent. a. ABC's cost of debt (HINT: "annual yield to maturity"!) equals: (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. ABC's cost of equity equals: (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. ABC's WACC (TIP: if you're unsure how to go from "debt-to-equity ratio" to "weight of debt" and "weight of equity", watch my short video https://youtu.be/BAipMtb6N9k) equals: (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Cost of debt % b. Cost of equity C. WACC do do do % %