Markung's Co. is a 100% equity-financed company (no debt or preferred stock); hence, its WACC equals its cost of common equity. Markung's Co.'s retained earnings will be sufficient to fund its capital budget in the foreseeable future. The company has a beta of 1.20, the risk-free rate is 4.0%, and the market return is 5.2%. What is Markung's Co.'s cost of equity? 15.54% 6.64% 11.44% 5.44% Markung's Co. is financed exclusively using equity funding and has a cost of equity of 12.95%. It is considering the following projects for investment next year: Project Required Investment Expected Rate of Return w $25,000 11.10% X $32,250 14.60% Y $15,375 10.65% z $11,975 14.10% Each project has average risk, and Markung's Co. accepts any project whose expected rate of return exceeds its cost of capital. How large should next year's capital budget be? $40,375 $44,225 $84,600 $69,225