F.E

1.A firm with 10 million preferred stock, 60 million equity, and 30 million debt, and with 6.8% cost of preferred stock, 9.8% cost of equity, and 3.1% before-tax cost of debt with a tax rate of 40% tax rate, what is the weighted average cost of capital? Answer as percentage to the nearest hundredth of a percentage as in xx.xx and enter without the percentage sign.

2.A firm's stock has 50% chance of a 36% rate of return. a 30% chance of a 14% rate of return. and a 20% chance of a -19% rate of return. What is the expected return for this stock? Answer as a percent return to the nearest hundredth of a percent as in xx.xx without entering a percent symbol. For negative returns include a negative sign.