The stock is currently selling for $15.25 per share, and its noncallable $1,000 par value, 20-year, 7.25% bonds with semiannual payments are selling for $875.00. The beta is 1.25, the yield on a 6-month Treasury bill is 3.50%, and the yield on a 20-year Treasury bond is 5.50%. The required return on the stock market (i. e., Rm)is 11.50%. The firm's tax rate is 40%.1) What is the best estimate of the after-tax cost of debt (%)? i. e, (1-t)*kd?2) Based on the CAPM, what is the firm's cost of equity (%) ? i. e., ke?3) Calculate the weights of market value of debt and market value of equity for use in calculating the WACC based in market values? i. e., Wd (%) and We (%)4) Calculate ABC's WACC (%) based on your answers to 1), 2), and 3)Show all of your calculations with appropriate explanation. You won't earn any point without showing allof your calculation work. AssetsCurrent assets 38,000,000Net plant, property, and equipment 101,000,000Total assets 139,000,000Liabilities and EquityAccounts payable 10,000,000Accruals 9,000,000Current liabilities 19,000,000Long-term debt (40,000 bonds, $1,000 par value) 40,000,000Total liabilities 59,000,000Common stock (10,000,000 shares) 30,000,000Retained earnings 50,000,000Total shareholders' equity 80,000,000Total liabilities and shareholders' equity 139,000,000