(i) Yield of ten-year government bonds in the US is 5%.
(ii) Current market value of CompanyA 's equity is 200 million with a Beta of 1.2.
(iii) Total debt outstanding in book value is 60 million.
(iv) Cash available on hand is 10 million.
(v) Cost of debt for CompanyA to issue corporate bonds is 6%, whose beta is 0.2.
(vi) The tax rate is assumed to be 30%.
CompanyA 's Average Cost of Capital (WACC)