5 MM Corporation has a target capital structure of 28 percent common stock, 10 percent preferred stock, and 62 percent debt. Its cost of equity is 13 percent, the cost of preferred stock is 6.5 percent, and the pre-tax cost of debt is 8 percent. What is the firm's WACC given a tax rate of 36 percent? A 4.8 percent B 6.1 percent ? 7.5 percent D 9.3 percent E 1.7 percent Topic 7 6 What is the payback period for the following set of cash flows? Year Cash Flow -$6,700 2,800 3,200 2,200 1,400 A 0.8 years B 1.5 years c 2.3 years D 3.7 years E 4 years 7A project has an initial cost of $44,000 and a four-year life. The company uses A ? ? D E straight-line depreciation to a book value of zero over the life of the project. The projected net income from the project is $1,500, $1,800, $1,900, and $2,000 a year for the next four years, respectively. What is the average accounting return? 5. 14% 6.55% 7.32% 8.18% 9.25%