Sugar Co. is considering raising money to fund an expansion into Sugar Fizzy Pop in 2022. It feels it can make  a return on invested capital of 8% after all expenses on this expansion and anticipates at the time that it will  have invested equity of $12,000 and outstanding long-term debt of $8,000 @ 10% interest. Sugar Co.  anticipates that the project is a bit riskier than it typically used to be and assumes that an equity investor will  consider the project twice as risky as the typical market premium of 8% historically.

A. Estimate Sugar Co.'s Cost of Equity Capital using the CAPM equation for equity returns assuming a current  risk-free rate of 2%.

B. Calculate Sugar Co.'s Weighted Average Cost of Capital assuming a tax rate of 20%