I was wondering if anyone could help with this question as I keep seeing different answers around the internet and cant check mine. The $50 million revolving line of credit currently has $6.5 million drawn at an interest rate of 3-month Libor plus 250 basis points. The remaining credit line can be assumed to have no fees associated with it. Brooks looks up the most recent 3-month U.S. dollar Libor rate and sees that it is 1.50%. Long-term financing was also in place in two forms. After several years of revenue and earnings growth, Tortuga issued one million shares of common stock at an issue price of $10 per share. The firm used this $10 million in funding to increase production lines and build a global presence by opening an additional manufacturing facility in Panama. Brooks finds the current price per share for Tortuga to be $21. Two years ago, Tortuga issued a 7-year bond for $5 million face value. Each $1,000 par bond carries a coupon of 9.75%. The bond pays interest semi-annually and is currently trading in the market at 103.25 as a percent of par. The company has a 34% corporate tax rate. The firm calculates its required return on equity with the Capital Asset Pricing Model (CAPM) using a 4.0% historical Treasury rate for the risk-free rate and 6.0% as the historical market risk premium. Tortuga's beta is1.45

1.Using the Capital Asset Pricing Model, what is the required rate of return on equity, ke(cost of equity) for Tortuga?

2.Analyzing the companys bond, what is the yield to maturity on the bond issue, kd(cost of debt)?

3.Using the market weight of equity, the original issue amount of debt, and the outstanding portion of the revolving line of credit, what are the weights of equity and debt in the capital structure (we & wd)?

4.Using the information provided, what is the firms weighted average cost of capital (WACC, ka)?