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 1.80, the risk-free rate is 6.0%, and the market return is 7.8%. What is Markung's Co.'s cost of equity? 21.84% 9.24% 11.04% 34.58% 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: 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? $69, 225 $84, 600 $40, 375 $44, 225