Bright Sun has 30,000 shares of common stock outstanding at a market price of $25 a share. This stock was originally issued at $21 per share. The firm also has a bond issue outstanding with a total face value of $250,000 which is selling for 96 percent of par. The cost of equity is 13 percent while the cost of debt is 6.9 percent. The firm has a beta of 1.48 and a tax rate of 21 percent. What is the weighted average cost of capital? Select one: 10.87 percent b. 10.36 percent 9.87 percent 13.53 percent 11.17 percent Which one of these statements is correct? Select one: a. Bonds provide tax benefits to issuers because interest payments are tax-deductible. b. Most long-term bond issues are referred to as unfunded debt. The default risk of a firm decreases when a firm issues bonds. d. All bonds are treated equally in a bankruptcy proceeding. e. A debenture is a senior secured debt. Which two methods of project analysis are the most biased towards short-term projects? Select one: a. Net present value and internal rate of return. b. Payback and discounted payback. Internal rate of return and profitability index. d. Discounted payback and profitability index. Net present value and discounted payback. Consider an equipment that costs $242,000 and is depreciated straight-line to zero over its seven-year tax life. The asset is to be used in a five-year project. At the end of the project the asset can be sold for $55,000. The tax rate is 21 percent. What is the after-tax salvage value? Select one: $57,970.00 b. $45,500.00 $63,757.14 d. $66,242.86 $53,805.15