Company X has Capital Structure compromised of 3.5 Billion in debt-Comprimosed entirely of bonds with a 5% coupon rate and 4.5%YTM and a $4Billion in equity. US Gov’s T-Bonds are trading at a rate of 1.85% and the historic Market return is 9.6%. Company X’s beta is 0.74. the tax rate is 35%
A. What is Company X’s Cost of Equity?
B. What is Company X’s WACC?