45. Shirley's + Son, Inc., has a debt-equity ratio of .25 and a tax rate of 35 percent. The firm does not issue preferred stock. The cost of equity is 12 percent and the pre-tax cost of debt is 8 percent. What is Shirley's weighted average cost of capital?

A. 10.6%

B. 9.6%

C. 8.8%

D. 6.6%

46. Debt securities with good marketability have:

A. Higher prices and lower yields

B. Higher prices and higher yields

C. Tax liability less than the rate of inflation

D. Zero interest rate risk