33. Corporate Finance, Inc., has a target capital structure of 70 percent common stock and 30 percent debt. Its cost of equity is 14 percent, and before-tax cost of debt is 7.5 percent. The relevant tax rate is 35 percent. What is its WACC? A. 14 percent B. 7.50 percent C. 12.05 percent D. 10.76 percent E. 11.26 percent Forms of Financing and Equity Markets Provide an overview of the corporate financing options and the balance sheet (debt and forms of equity capital) Distinguish between the use of internally generated cash and external sources of financing Understand how capital markets influence corporate finance strategy Primary and Secondary Markets-What is the difference? Distribution Systems-What are the motivations and conflicts? Discuss the process of raising public equity capital Subject: Corporate Finance Theory Please provide me answers with details that is based on the corporate finance theories Answer the following two questions: 1. With debtor in possession (DIP) financing, the bankrupt firm can obtain additional amounts of debt senior to the firm's existing debt. Explain how the firm's existing debtholders can benefit from this. 2. Would debtholder-equityholder conflicts be more severe for firms that borrow short term than long term? Explain why.