WBC corporation has a stock market value of $1 billion. It has long term debt of $500 million outstanding at the borrowing cost of %7. It's stock has a beta of 1.2 and the market return is 10% with risk free rate at %4. Tax rate is 35%.
a) What's the company cost of equity under CAPM?
B) What's company after tax cost of debt?
C) What's the company's WACC?