1. A firm has P2,000,000 invested in T-bills yielding 8% per annum. This investment will satisfy the firms need for funds during the coming year. It costs P50 to sell these bills. If the firm needs P166,667 a month, how frequently should the company sell off T-bills?
2. 1. About every 3 days
   2. About every 9 days
   3. About every 15 days
   4. About every 18 days

2. A company has P1,000,000 in shareholders equity and P2,000,000 in debt equity (8% bonds). Its after-tax weighted average cost of capital is 12%, but it uses 15% as the hurdle rate in capital budgeting decisions. During the past year, its operating income before tax and interest was P500,000. Its tax rate is 40%. What is the companys cost of equity capital?