Tarrasa Mining Corporation has 11.2 million shares of common stock outstanding and 205,000 5.9% semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $37 per share and has a beta of 0.8. The bonds have 12 years to maturity and sell for 91% of par. The market risk premium is 5.5%, T-bills are yielding 4%, and Tarrasa Mining's tax rate is 30%.
What is the firm's market value weight of equity? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations).
What is the firm's market value weight of debt? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations).
What is the firm’s cost of equity? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations).
What is the firm’s cost of debt? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations).
Topic: WACC