Save for Later Submit Test 708 Ginet plc makes full body scanners for airport security systems. The Transportation Security Administration (TSA) is considering ordering 100 such machines a total cost of $20 million. To ramp up production to the order Gratis considering building a new factory. To evaluate the new factory project, inelig needs to estimats cost of capital Review the following information and answer the questions that follow to help reti with its ar Debt Equity Number of bonds outstanding 250.000 Market price $ Face value $1,000 Shares outstanding 5 min 3 years Beta Coupons 10% paid annually Risk-free 6% Market price $1,012.23 Expected return on market 11% Taxe a. What is the ther-tax cost of debt for Oinetic bonds? b. According to the CAPM, what is the required return of Oinetic shareholders? 2. What is the after-tax cost of debt for Ginetig bonds? 6.5% (Round to two decimal places) b. According to the CAPM, what is the required retum of Cinetiq shareholders? (Round to two decimal places) c. What is the weighted average cost of capital (WACC) for ne? (Round to two decimal places) Enter your answer in each of the answer boxes $ 7 8 3 6 4 5