A firm has $2,000,000$ shares of common stock outstanding with a market price of $$2$ per share.

It has $2,000$ bonds outstanding, each selling for $$1,200.$ The bonds mature in $15$ years, have a

coupon rate of $10\%,$ and pay coupons annually. The firm's beta is $1\mathrm{.}2,$ the risk$-$free rate is $5\%,$

and the market risk premium is $7\%.$ The corporate tax rate is $34\%.$ What is the firm's weighted

average cost of capital?

A$.5\mathrm{.}42\%$

B$.6\mathrm{.}53\%$

C$.9\mathrm{.}36\%$

D$.10\mathrm{.}28\%$

E$.11\mathrm{.}57\%$A firm has an outstanding bond with a $$1,000$ par value that is convertible into $50$ shares of common stock. The bond's conversion ratio is $25.50.100.20.$