14. If a company has debt of $200 million and equity of $200 million, what is its total capital? a $200 million b. $300 million c$400 million d. None of the above 15. If a company's capital structure includes $300 million of equity and $100 million of debt, what percent of the company's capital structure is debt? a 50% b. 25% c. 75% d. 100% 16. If a company's capital includes 20% debt and 80% cquity, and the company's after tax cost of debt is 4% and its cost of equity is 9%, what is its weighted average cost of capital (WACC)? a 9% b4% c6% d. 8% 17. If a company has annual interest expense of $25 million and debt outstanding of $1 billion, what is its before tax cost of debt? a 2% b. 3% c2.5% d. 3.5% 18. If a company's before tax cost of debt is 4%, what is its after tax cost of debt? a. 2.55% b. 3.16% c. 1.25% d. 3.40% 19. The CAPM formula is used to approximate investors a. Actual rate of return b. Required rate of return c. Interest income d Dividend income