A firm has a debt-equity ratio of 1 and a tax rate of 40 percent. Its cost of equity is 10 percent and its before-tax cost of debt is 8 percent. What is the firm's WACC? 4.8% O 9% O 7.4% Company AZ has 100,000 shares of common stock outstanding at a price of $20 a share. The company's equity beta is 1.2. There are also $1.5 million bonds outstanding that has a coupon rate of 8 percent and yield of maturity of 10%. The bonds mature in 14 years, pay interest semiannually. What is the company's weighted average cost of capital? Assuming the Treasury Bill's yield is 3% and the market return is 8%, corporate tax rate is 40%. 9.77% O 7.71% O 7.2% Stock AZ has a beta of 0.5. The market risk premium is 10 percent, the risk-free rate is 2 percent and inflation is 3 percent. What is the expected return on this stock? O 8% 6% 07%