8. The Downtowner has 950,000 shares of common stock outstanding valued at $38 a share along with 40,000 bonds selling for $1,020 each. What weight should be given to the debt when the firm computes its weighted average cost of capital? a. 46.67 percent b. 53.06 percent c. 55.05 percent d. 48.27 percent e. 51.79 percent The Market Outlet is an all-equity financed firm with a beta of 1.38 and a cost of equity of 5 percent. The risk-free rate of return is 4.25 percent. What discount rate should the firm 9. assign to a new project that has a beta of 1.25? a. 13.54 percent b. 13.72 percent c. 13.94 percent d. 14.14 percent c. 14.36 percent 10. Street Corporation's common stock has a beta of 1.27. The risk-free rate is 3,.2 percent and the expected return on the market is 12.68 percent. What is the firm's cost of equity? a. 12.84 percent b. 15.24 percent c. 17.67 percent d. 19.30 percent e. 21.50 percent