A.

BlockOut Co. has 78,543 bonds outstanding that are selling at par value. The bonds yield 8.2 percent. The company also has 5.2 million shares of common stock outstanding. The stock has a beta of 1.15 and sells for $43.3 a share. The U.S. Treasury bill is yielding 4.5 percent and the market risk premium is 8.8 percent. Blackout's tax rate is 34 percent. What is the firm's weighted average cost of capital? (Enter answer in percents.)

B.

Dominosa, Inc. wants to have a weighted average cost of capital of 7.3 percent. The firm has an aftertax cost of debt of 5.7 percent and a cost of equity of 10.5 percent. What debt-equity ratio is needed for the firm to achieve their targeted weighted average cost of capital?

C.

Information on Inkscape Co., is shown below. Assume the company's tax rate is 33 percent. The firm has no debt. Common stock: 227,459 shares outstanding, selling for $81.1 per share; beta is 1.24. Preferred stock: 27,773 shares of 4 percent preferred stock outstanding, currently selling for $89.2 per share. Market: 8.52 percent market risk premium and 3.65 percent risk-free rate. Calculate the WACC. Enter answer in percents.