Question: - Given the following data for a company: Equity E 800,000 USD -Debt D=200,000 USD - Invested Capital IC = 1,000,000 USD E/IC-80% -

- Given the following data for a company: Equity E 800,000 USD -Debt D=200,000 USD - Invested Capital IC = 1,000,000 USD E/IC-80% - D/IC=20% -Cost of debt k=9% - Beta-1.6 - D/E=0.25 compute the cost of equity (using the CAPM model) and WACC if the the risk-free rate Ta is 7%, the market risk premium MRP is 6% and the tax rate 19%.

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