Automatic Data Processing has a beta of 2.67 and the expected market return is 0.16. If Treasury bills are currently yielding 0.03 percent, find the cost of capital for Automatic Data Processing (round your answers).

none of the answers is correct

39.9%

27.5%

37.7%

34.1%

Calculate WACC given the following information (BT means before tax).

Total Value of Common Stocks (S)	$1,000,000	Cost of Equity (common stocks, Ks)	22%
Total Value of Preferred Stocks (P)	$200,000	Cost of Preferred stock (Kp)	12%
Total Value of Debt (D)	$300,000	Before Tax Cost of Debt (BT Kd)	9%
		Tax rate (T)	30%

none of the answers is correct

17.53%

9.86%

20.10%

19.72%