Consider an enterprise with a capital structure consisting of 20% debt and 80% equity. If you use the costs of debt and equity of the company from Question 21 and 22, what would be the company's WACC? 6.5% 6.9% - 7.3% 8.2% 7.1% Assume a company can invest in equipment that will cost $900,000 and is expected to generate $150,000 a year in revenue for the first three years and $250,000 a year in revenue for the next four years. The company has the capital available for the equipment and could alternatively invest it in the stock market for an expected return of 11.5% per year. The managers feel that buying the equipment or investing in the stock market are similar risks. What is the cost of debt of a company with $1,500,000 of interest expense, $25 million of total debt, and 15% of a marginal tax rate? Consider an enterprise with a capital structure consisting of 20% debt and 80% equity. If you use the costs of debt and equity of the company from Question 21 and 22, what would be the company's WACC? 6.5% 6.9% - 7.3% 8.2% 7.1% Assume a company can invest in equipment that will cost $900,000 and is expected to generate $150,000 a year in revenue for the first three years and $250,000 a year in revenue for the next four years. The company has the capital available for the equipment and could alternatively invest it in the stock market for an expected return of 11.5% per year. The managers feel that buying the equipment or investing in the stock market are similar risks. What is the cost of debt of a company with $1,500,000 of interest expense, $25 million of total debt, and 15% of a marginal tax rate