E-Finance Chapter 7 Exercise 11 Kareem Construction Company has the following amounts of interest-bearing debt and common equity capital: Kareem Construction is in the 30 percent average tax bracket. A) Calculate the after-tax WACC for Kareem. Round to one decimal place. B) Show how Kareem's WACC would change if the tax rate dropped to 25 percent and the estimated cost of equity capital were based on a risk-free rate of 7 percent, a market risk premium of 8 percent, and a systematic risk measure or beta of 2.0. Round to one decimal place