(solution) THE COMPANY tricorn want to calculate its cost of capital

(solution) THE COMPANY tricorn want to calculate its cost of capital

1. THE COMPANY tricorn want to calculate its cost of capital. The bank will charge interest of 5.5% and the tax rate is 35%. LEVERAGE BETA coefficient is 1.5; Risk free rate is 2.22% and the risk of the market is estimated at 6%. THE COMPANY IS LOCATED IN THE UNITED STATES.2. THE COMPANY tricorn want to open a branch in PERU. The company wants to take on debt in the Peruvian market and offer you a rate of 6.5%. The company wants to operate with capital structure of 20/80. Free rate risk in the United States is 2.22%. MARKET PERFORMANCE BY S & P 500 INDEX IS ESTIMATED AT 8.3%. THE BETA OF THE COMPANY WILL BE TAKEN OF BETA MATRIX. COUNTRY RISK RATE FOR PERU IS 2%. Calculating the WACC OF PERU tricorn.