1. Consider the following Data Concerning Eshrak Company: Debt, D = 500,000. Equity, E = 300,000. Cost of Debt rD = 6%. Cost of Equity, rE = 11%. Corporate Tax, Tc = 25 %. What is the weighted average Cost of Capital (WACC)? *

3 points

6.94%

7.88%

0.0654

0.0412

2.

What is the return on Equity Using the CAPM *

12.12%

13.12%

14.12%

12.4%

How much is the Weight of Equity(WE) and Debt (WD)? *

WE 30,000 and WD 45,000

WE71.4% and WD28.6%

WE28.6% and WD71.4%

WE 10,000 and WD 15,000

What is the WACC? *

0.0965

38%

28%

7.12%%