1. (TCO 8) If the financial markets are strong form efficient, then: (Points : 4) only the most talented analysts can determine the true value of a security. only company insiders have a marketplace advantage. technical analysis provides the best tool to gain a marketplace advantage. no one person has an advantage in the marketplace. every security offers the same rate of return. 2. (TCO 5) Royal Petroleum Co. can buy a piece of equipment that can be financed with debt at a cost of 9 percent (after-tax) and common equity at a cost of 16 percent. Assume debt and common equity each represent 50 percent of the firm's capital structure. What is the weighted average cost of capital? (Points : 4) between 4.5% and 8% more than 13% between 12 and 13% between 13 and 14% none of the above