Question: please help with part C. Qineti pic, makes full body scanners for airport security systems. The Transportation Security Administration (TSA) is considering ordering 100 such

please help with part C.
Qineti pic, makes full body scanners for airport security systems. The Transportation Security Administration (TSA) is considering ordering 100 such machines at a total cost of $20 milion To tam up production for the order Qinetiq is considering building a new factory To evaluate the new factory project, Qinetiq needs to estimate its cost of capital Review the following information and answer the questions that follow to help Qinetiq with its analysis Debt Number of bonds outstanding = Face value = Maturity = Coupons = Market price = Tax rate = 100,000 $1.000 3 years 8% paid annually $1,020.89 35% Equity Market price Shares outstanding = Beta Risk-free rate Expected return on market = $47 5 million 1.45 3% 7% a. What is the after-tax cost of debt for Qinetig bonds? h Anreina tatha ADR achat in the inden af inntinnhanhnien b. According to the CAPM what is the required return of Qinetiq shareholders? 8.80 % (Round to two decimal places.) c. What is the weighted average cost of capital (WACC) for Qinetig? % (Round to two decimal places.) clic Check
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