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West Oil Company, LLC has three long term loans (interest bearing debt): loan #1 with a...

West Oil Company, LLC has three long term loans (interest bearing debt): loan #1 with a balance of $300,000 at 8% interest; loan #2 with a balance of $400,000 at 5% interest, and loan #3 with a balance of $100,000 at 10% interest. The company has accounts payable of $70,000 (non-interest bearing) and equity of $1,200,000. It estimates that its cost of equity is 11%. Its tax rate is 34%

1. What is the company’s weighted average cost of capital on total invested capital (total assets)? Include non-interest bearing debt, interest bearing debt, and equity

2. What is the company’s weighted average after tax cost of debt?

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