mylab.pearson.com C + 88 E Home D2L MyFinanceLab All Assignments - FIN-336-X4040 Multi... Do Homework - 3-1 MyLab Homework Course Hero FIN-336-X4040 Multinational Corp Finance 22EW4 Roseazanna Gordon 03/16/22 8:06 AM Homework: 3-1 MyLab Homework Question 2, Problem 13-5 (algorithmic) HW Score: 0%, 0 of 32 points Part 1 of 2 O Points: 0 of 4 Save Thunderhorse Oil. Thunderhorse Oil is a U.S. oil company. Its current cost of debt is 7.20%, and the 10-year U.S. Treasury yield, the proxy for the risk-free rate of interest, is 3.10%. The expected return on the market portfolio is 8.40%. The company's effective tax rate is 40%. Its optimal capital structure is 25% debt and 75% equity. a. If Thunderhorse's beta is estimated at 1.20, what is Thunderhorse's weighted average cost of capital? b. If Thunderhorse's beta is estimated at 0.90, significantly lower because of the continuing profit prospects in the global energy sector, what is Thunderhorse's weighted average cost of capital? a. If Thunderhorse's beta is estimated at 1.20, what is Thunderhorse's weighted average cost of capital? % (Round to two decimal places.) Help me solve this View an example Get more help - Clear all Check