Addisons Equipment has 40,000 bonds outstanding that are selling at 103% of par. These bonds have a $1,000 face value. Bonds with similar characteristics are yielding 6 percent. The company also has 1.5 million shares of common stock outstanding. The common stock has a beta of 1.2 and sells for $53.31 a share. The U.S. Treasury bill is yielding 1 percent and the expected return on the market is 7 percent. The corporate tax rate is 40 percent. The WACC for Addisons is closest to 13.07% 3.60% 7.45% 6.64% 12.98% Morgans Equipment, a firm with identical assets, operation and very similar products to Addisons Equipment (from the question directly above), has 10% more debt in its capital structure. Morgans produces equipment that is an upscale version of equipment produced by Addisons and Morgans' equipment sales tend to be more cyclical. Identify correct statement(s); F. Morgans Equipment will have the same beta as Addisons Equipment since they produce very similar equipment The cost of equity (Re) for Morgans Equipment will be lower than Re for Addisons Equipment Morgans Equipment has higher fixed costs than Addisons Equipment and accordingly a lower beta Morgans Equipment will have a higher beta and a higher cost of equity (Re) than Addisons Equipment Morgans Equipment has more cyclical sales than Addisons Equipment and accordingly a lower cost of equity