7. Use the information to answer the following questions. - The XXX Company has a marginal tax rate of 30%. - The company can issue new bonds at par that would provide a 10% YTM. - The firm's beta is 1.2 , the T-bill rate is 4%, and the market return is 8%. - The firm's long-term debt currently sells at par value for $2,500. - The firm has 100 shares of common stock outstanding that sell for $10 per share. What is XXX's cost of common stock? A) 14.80% B) 21.08% C) 8.80% D) 9.80% E) 10.36% 8. Continued from the previous question. What is XXX's capital structure based on market weights? A) 70.00% in debt, 30.00% in equity. B) 30.00% in debt, 70.00% in equity. C) 45.23% in debt, 54.77% in equity. D) 48.50% in debt, 51.50% in equity. E) 71.43% in debt, 28.57% in equity. 9. Continued from the previous question. What is the firm's weighted average cost of capital? A) 7.51% B) 9.90% C) 12.70% D) 13.95% E) 15.70%