Question: Please fill in the remaining cells: PART 2 -COMPUTING WACC WITH CAPM This problem has NO relation to the problem in Part 1 The current

Please fill in the remaining cells:

PART 2 -COMPUTING WACC WITH CAPM This problem has NO relation to the problem in Part 1 The current risk-free rate is 5.51% and the market is expected to return 7.55% per year. The company's belo is 1.57. The company expects to pay 4.9% for in de br. the target capital structure for the company is 35% equity and 65% debt. The marginal tax rate is 21% plus 4 for state and local taxes (ISTR = 25%). A. What is the after-tax cost of debt? B. What is the cost of equity? C. Calculate the WACC CAPM Inputs PE 5,51% IM 7.55% Beta 1.57 Cost/Debt 4.90% USTR 25% Capital Structure Debe Equity WACC Answer A Answer Answer 3.68% 8.71N 5.44% 65% Total 5.44% Cadore

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