9. Bleakly Enterprises has a capital structure of 46 percent common stock, 9 percent preferred stock, and 45 percent debt. The flotation costs are 3.7 percent for debt, 4.8 percent for preferred stock, and 5.2 percent for common stock. The corporate tax rate is 21 percent. What is the weighted average flotation cost? A. 5.83 percent B.5.20 percent C. 4.49 percent D. 5.67 percent E. None of the above 24. Using information from the above for Happy & Fun Inc. If Happy & Fun decides to increase its debt-equity ratio (D/E) to 0.5. what is the weighted average cost of capital (WACC) of Happy & Fun Inc. after taking on the leverage? A. 14.79 percent B. 15.31 percent C. 17.73 percent D. 18.75 percent E. None of the above I 25. When a manager develops a cost of capital for a specific project based on the cost of capital for another firm which has a similar line of business as the project, the manager is utilizing the approach. A. subjective B. pure play C. divisional cost of capital D. capital adjustment E. security market line