Question: 20. M&T Inc. has a target capital structure for 2021 of 45% debt and 55% equity. It has a beta of 1.2. Yield to maturity

20. M&T Inc. has a target capital structure for 2021 of 45% debt and 55% equity. It has a beta of 1.2. Yield to maturity (YTM) on the company's recent debt is 10%. It's tax rate (federal and state) is 25%. You are given a risk-free rate of 3% and a market premium of 6.5%. Using the CAPM method for its cost of equity, what is its 2021 WACC

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