GFE Inc. has a beta of 1.5. The expected return on the market is 14.8% while the risk-free rate is 2.7%. Given this information, what is the return required by shareholders? 23.98% 21.47% 20.85% 19.68% None of the above A company is looking to invest in new machinery. The current financing is 50% debt, 45% common stock, and 5% preferred stock. The company anticipates the new debt issue will consist of 10-year $1,000 face-value bonds that will be priced at par. The bonds will pay an annual coupon of $85. Flotation costs for this new bond issue will be $5 per bond. The company is planning to pay a dividend of $4.60 and is expecting to increase the dividend by 3.5% per year, indefinitely. The current share price for the company's common stock is $42. The company also plans to issue preferred stock that will pay a dividend per share of $5.50 per year in perpetuity. The market price of the preferred stock will be $47.75. The flotation costs of both the common stock issue and preferred stock issue will be $2.50 per share. If the company's marginal tax rate is 39%, then what is the Weighted Average Cost of Capital for this company? 9.16% 14.52% 12.29% 11.85% 10.04%