The Hummingbird Corporation has financial leverage. If it had no debt, its equity Beta would have been .95. The corporation's target debt-equity ratio equals .50 and it would like to keep it at this level when expanding its business in the future. Here is some information on the market: the expected return on the market portfolio equals 12 percent, and T-bills offer a 3.1 percent annual return. The Hummingbird Corporation has debt with 25 years to maturity. $1,000 par value, and a 6 percent coupon rate, with semiannual coupon payments. Today these bonds can be bought and sold for $1,050 each. The coroporation face a corporate income tax rate of 23 percent. a. Calculate the Hummingbird Corporation's cost of debt. (HINT: "annual yield to maturity") (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the Hummingbird Corporation's cost of equity. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. Finally, calculate the Hummingbird Corporation's weighted average cost of capital (or WACC). (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 5.66% b. Cost of debt Cost of equity WACC 12.18 X % c. 9.57 %