The Following Financial Statement Data Pertains to Outside,Inc Required:
A

The following financial statement data pertains to Outside,Inc.,a manufacturer of men's outerwear (dollar amounts in millions):
$\begin{array}{l}\begin{array} { l } \text { Total Assets } \\\text { Interest-Bearing Debt } \\\text { Average Pre-tax barraning } \\\text { Camman Equity: } \\\text { Badk Value } \\\text { Market Value } \\\text { Incame Tax Rate } \\\text { Market Equity Beta } \\\text { Market Premium } \\\text { Risk-Fe interest rate }\end{array}\begin{array} { r } \$ 145,782 \\\$ 30,659 \\9.25 \%\\\\\$ 22,515 \\\$ 60,843 \\42 \% \\0 .88 \\8.5\% \\2.4\%\end{array}\end{array}$
Required:
a.Calculate the company's cost of equity capital.
b.Calculate the weight on debt capital that should be used to determine Outside's weighted-average cost of capital.
c.Calculate the weight on equity capital that should be used to determine Outside's weighted-average cost of capital.
d.Calculate Outside's weighted-average cost of capital.