8. Al's Wooden Sheds has a cost of equity of 11 percent and a pre-tax cost of debt of 7 percent. The firm maintains a debt-equity ratio of .5 and has a tax rate of 35 percent. What is the firm's weighted average cost of capital? a. 7.13 percent b. 8.42 percent c. 8.85 percent d. 9.16 percent 9. The Cola Co. is an all equity company that distributes soft drinks. The Cola Co. has 50,000 shares of stock outstanding at a market price of $22.56 per share and has a beta of 1.2. The Cola Co. is considering expanding into the potato chip and snack market. Potatoes and More is an all equity company that is currently involved with the snack foods market. Potatoes and More has 100,000 shares of stock outstanding at a market price of $38.10 per share. The beta of Potatoes and More is 1.3. The risk-free rate of return is 4