4. The beta of Waumini securities is 0.95 . If a told the return on government securities is 7.5 and the premium in the market is 6%. Determine the required return on D securities. A. 7.5% B. 8.925% C. 13.2% D. 12.6% 5.Why is the cost of debe considered cheaper than the cost of equity A. Shareholders have a residual claim on the earnings of the company. B. Cost of issuing debt is lower than the cost of issuing equity. C. Debt is easy is easier to get from the financial markets D.Level of risk associated with equity shareholders (Liquidation and high business risk)