D. 15.9%. 10. Suppose you are the money manager of a $4 million investment fund. The fund consists of 4 stocks with the following investments and betas Stock Investment Beta $400,000 1.5 0.5 600,000 1,000,000 1.25 2,000,000 0.75 If the market's required rate of return is 14% and the risk-free rate is 6%, what is the fund's required rate of return? A. 8%. B. 12.3%. C. 14.3%. D. 13.3%. IV. Cost of Capital: 11. DMA Corporation just paid a dividend of $3. This dividend is expected to grow at a constant rate of 4% per year. The price of its stock now is $20. New stock can be sold at this price subject to 11% flotation cost. The company's marginal tax rate is 40% calculate the cost of internal (retained earnings) and external (new common stock) equity for this company A. 15.6% and 17.53% respectively. B. 19% and 20.85% respectively. C. 18.42% and 19% respectively. D. 19.6% and 21.53% respectively. 12. Oxford Corporation has the following capital structure