Deep Sea Fishing issues only common stock and coupon bonds. The firm has a debt-equity ratio of .60. The cost of equity is 13.7 percent and the pre-tax cost of debt is 9.4 percent. The tax rate is 35 percent. What is the capital structure weight of the firm's equity? 58.75 percent 60.00 percent 62.50 percent 66.67 percent 75.00 percent Which of the following must total to 100 percent? I. rates of return for the various economic states II. portfolio weights III. probabilities of occurrence for the various economic states IV. betas of the individual securities held within a portfolio I and III only II and IV only II and III only II, III, and IV only I, II, III and I Stock A has an expected return of 14 percent and a beta of 1.3. Stock B has an expected return of 10 percent and a beta of .9. Both stocks have the same reward-to-risk ratio. What is the risk-free rate? 1.0 percent 1.8 percent 2.3 percent 2.5 percent 3.1 percent