Company X has 2 million shares of common stock outstanding at a book value of $1 per share. The stock is currently priced at $5.00 per share. The company also has $2 million in face value of debt, with exactly 15 years remaining until maturity and a coupon rate of 10% paid semiannually. The yield to maturity on the bonds is 12%. What is the weight of debt capital in calculating the firm's weighted average cost f capital? A. 14.71% B. 15.30% C. 46.30% D. 50.00% Assuming a tax rate of 35%. the weighted average cost of capital for a firm using 55% equity with a required return of 15%, 35% debt with a cost of 8%, 10% preferred stock with a required return of 10%, is closest to: A. 10.72% B. 11.07% C. 11.70% D. 12.05% A company chief financial officer (CFO) is estimating his company's cost of debt. The company's bonds offer a coupon rate of 8% with semiannual payments, has exactly 3 years remaining until maturity, and each $1,000 par bond is currently priced at $960. The company's cost of debt is closest to. A. 4.78% B. 5.48% C. 8.00% D. 9.57% Using CAPM, what happens to a stock's required return it the stock's beta increases from 1.0 to 1.5 risk-free rate decreases from 5% to 4%, and the market risk premium increases Horn 8% to 9%? A. It increases from 12% to 14%. B. It increases from 13% to 17.5%. C. It increases from 14% to 21%. D. It remains unchanged. A preferred stock with $1.000 par value pays an annual coupon of 12% and is currently priced at per share. The company's cost of preferred stock is closest to. A. 6%. B. 10%. C. 12%. D. 20%