$5.$Your firm is financed by $40\%$ equity and $60\%$ debt. The cost of equity is$16\%$ and the

cost of debt is $7\%.$ Your corporate tax rate is $37\%.$ What is your weighted average

cost of capital $($WACC$)?($Answer: d$)$

a$.7\mathrm{.}77\%$

b$.8\mathrm{.}09\%$

c$.8\mathrm{.}78\%$

d$.9\mathrm{.}05\%$

e$.9\mathrm{.}58\%$

$6.$ You need to finance a project that will cost $$17$ million. The floatation costs on

raising the funds are $6\%.$ How much money do you need to rise to be able to afford

the project? $($Answer: e$)$

a$.$ $$15,980,000$

b$.$ $$16,827,203$

c$.$ $$17,000,000$

d$.$ $$17,308,221$

e$.$ $$18,085,106$