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Calculate the company cost of debt capital

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Question - The following financial statement data pertains to Oriental Inc.:

Total Assets $195,250

Interest-Bearing Debt (market value) $100,900

Pretax borrowing rate for debt 11.25%

Common Equity:

Market Value $151,350

Statutory Tax Rate 21%

Market Beta 1.08

Market risk premium 7.5%

Risk-free rate 4.5%

Required -

a. Calculate the company's cost of debt capital.

b. Calculate the company's cost of equity capital.

c. Calculate the company's weighted-average cost of capital WVACC).

Reference no: EM133185353

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