GIVEN ABOUT THE MARKET:

• T-bill return is3.2 % annually.
• The expected annual return on the market portfolio equals10 %.

GIVEN ABOUT THE "GAMMACORPORATION":

• Gamma Corporation's capital structure is levered. (If Gamma Corporationwas not levered, its equity Betawould have been1.05.)
• Gamma Corporation would like to maintain atarget debt-to-equity ratio of.55 which is its current level.
• Gamma Corporation has debt in the form of corporate bonds. The bonds maturein 30 years, each bond hasa $1,000 par value, and the coupon rate of6.1 %. The bonds require that the coupons are made semiannually until the bonds mature. Each bond can be traded for$1,055 in today's economy.
• Gamma Corporation faces a24 % tax rate on its taxable income.

a.	Gamma Corporation's cost of debt(HINT: "annual yield to maturity"!) is ____:(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b.	Gamma Corporation's cost of equity is ____:(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
c.	Gamma Corporation's WACC is _____ (TIP: if you are unsure how to use the information on "debt-to-equity ratio" to calculate "weight of debt" and "weight of equity", you can watch my short video https://youtu.be/BAipMtb6N9k)