Common shares of Yostmeister, Inc are currently selling for $30. The firms had free cash flow for the first fiscal year that just ended of $100 million and has a weighted average cost of capital of 12 percent. The firm also has $2.5 billion in debt and 75 millions shares outstanding. You expect the growth rate for free cash flows increase by 8% per year. Based on this information, how will you recommend this stock? A. Not sure B. Hold C. Sell D. Buy QUESTION 18 Mighty has 40,000 shares of common stock outstanding at a market price of $20 a share. The firm also has a bond issue outstanding with a total face value of $280,000 which is selling for 80 percent of par. The cost of equity is 13 percent while the after-tax cost of debt is 6.9 percent. The firm has a beta of 1.5 and a tax rate of 30 percent. What is the weighted average cost of capital? CA. 11.21% B. 11.67% C. 10.88% 0.11.42%