A firm has $30 million in outstanding bonds (debt) with a coupon rate of 7% and a yield-to-maturity of 6%. The firm has 1 million shares of outstanding common stock with a current market price $30 per share. The firm's common stock has a beta of 1.5, the risk free rate is 3%, and the expected return on the market is 9%. The firm is subject to a 20% corporate tax rate and the firm has no outstanding preferred stock. What is the firm's Weighted Average Cost of Capital (WACC)? 8.80% 6.15% 8.4096 7.75% 6.55% QUESTION 12 Discount Parachute, Inc. (DPI) is evaluating a project with expected cash flows shown below. The appropriate discount rate is 15%. DPI uses NPV to make its capital budgeting decisions. If the project is independent of all other possible projects, what should DPI do and why? Year O Cash Flow: $750,000 Year 1 Cash Flow: $350,000 Year 2 Cash Flow: $300,000 ODPI should accept the project because the project's NPV is greater than zero, DPI should reject the project because the project's NPV is less than zero DPI should reject the project because the project's NPV is greater than zero. DPI should reject the project because the project's NPV equals zero. ODPI should accept the project because the project's NPV is less than zero