9) Calculate a firm's W ACC given that the total value of the firm is $2 million, $600,000 of which is debt, the pre-tax cost of debt is 10%, and the cost of equity is 15%. The firm pays no taxes. 9) A) 13.5% B) 11.5% C) 14.4% D) 9.0% 10) Which one of these is a specific risk? 10) A) Deterioration in the overall economic outlook B) Inflation increase of 2.3% C) Revision to the corporate tax laws D) A fire at the company's main factory 11) The weighted-average cost of capital for a firm with a 40/60 debt/equity split, 8% cost of debt, 15% cost of equity, and a 21% tax rate is: 11) A) 12.20%. B) 8.63%. C) 11.53%. D) 13.80% 12) A good way to reduce macro risk in a stock portfolio is to invest in stocks that: 12) A) have low exposure to business cycles. B) pay guaranteed dividends. C) have diversified away the macro risk. D) have only specific risks