4. Chesapeake Bay Company has 10 million shares of common stock outstanding with a price of $40 per share. There are 1 million shares of preferred stock outstanding with a price of S20 per share. The company also has debt outstanding with a market value of $80 million. The required return on common stock is 15.2%. The required return on preferred stock is 13.4% and the before- tax required return on debt is 10%. If the tax rate is 40%, what is Chesapeake Bay's WACC? a 10.28% b. 10.92% c. 12.63% d. 12.91% e. 13.66% Question 5 10 pts 5. The internal rate of return of a project a. Changes when the cost of capital changes O b. Is equal to the annual net cash flows divided by one half of the project's cost when the cash flows are an annuity c. Must exceed the weighted average cost of capital for the firm to accept the project d. Is interpreted as the required return on the project. e. Both cand d are correct