Question: Problem 12: Problem 12 Intro Consider the following information for Clinkle Company: Stock information: . Stock price: $77 Number of shares outstanding: 18 million .

Problem 12:

Problem 12 Intro Consider the following information for Clinkle Company: Stock information: . Stock price: $77 Number of shares outstanding: 18 million . Beta: 1.3 Bond information: . Value of debt: $680 million . Average yield to maturity: 6.9% Other information . Tax rate: 21% Government bond interest rate: 3% . Expected return on the S&P 500: 6% Part 1 7 8 Attempt 1/10 for 10 pts. What is the cost of equity? 3+ decimals SubmitPart 2 8 | Attempt 1/10 for 10 pts. What is the weighted average cost of capital? 3+ decimals Submit

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