0.8.295 8. Sapp Trucking'. balance sheet shows * total of noncallable $45 million long-term debt with a coupon rate of 7.009 and a yield to maturity of 6.00% This debt currently has a market value of $50 million. Tha balance sheet also shows that the company has 10 million shares of common stock, and the book value of the common aquity (common stock plus retained earningo) is $65 million. The current stock price is $22.50 per share; stockholders' required return, I., i. 14.00; and the firm's tax rate is 409. The CTO thinks the WACC ahould be based on market value weights, but the president thinke book weights are more appropriate What is the difference between these two WACCa? a. 1.559 b. 1.72 e. 1.919 d. 2.138 .. 2.364 9. Which of the following statements in CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. a. A project's NPV is found by compounding the cash inflows at the IRR to find the terminal value (TV), then discounting the TV at the WACC. b. The lower the WACC used to calculate it, the lower the calculated NPV will be c. If a project's NPV is less than zero, then its IRR must be less than the WACC. d. If a project's NPV is greater than zero, then its IRR must be less than zero. e. The NPV of a relatively low-risk project should be found using a relatively high WACC