the problem and provide step-by-step explanation PROBLEM I. Slobe Telecom is considering a project for the coming year that will cost P50 million. Slobe plans to use the following combination of debt and equity to finance the the investment: a. Issue P15 million of 20-year bond at a price of 101, with a coupon rate of 8%, and floatation costs of 2% of par. b. Use P35 million of funds generated from earnings. The equity market is expected to earn 12%. US treasury bonds are currently yielding 5%. The beta coefficient of Slobe is estimated to be .60. Slobe is subject to to an effective tax rate of 40%. 1. The before-tax cost of Slobe's planned debt financing , net of flotation costs, in the first year is ________. 2. Assume the after-tax costs of debt is 7% and the cost of equity is 12%. The WACC must be _______. 3. The company's expected rate of return under the CAPM must be ________