Interest rates on 4-year Treasury securities are currently 8.0%, while 6-year Treasury securities yield 7.75%. If the pure expectations theory is correct, what does the market believe that 2-year securities will be yielding 4 years from now? 8.57% O 7.25% - 8.32% 9.88% QUESTION 4 You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.00%, the cost of preferred is 7.50%, and the cost of equity is 12.00%. The firm will not be issuing any new stock. What is its WACC? O 8.23% 18.00% 8.92% 10.54%