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Now ignore the previous question. Torget has a pre-tax cost of debt of 5% and a tax rate of 20%. Furthermore, it has severed city

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Now ignore the previous question. Torget has a pre-tax cost of debt of 5% and a tax rate of 20%. Furthermore, it has severed city beta on a debt-to-value percentage of 25%. The market risk premium is BM, and the risk tree rate is 1%. What is the cost of city nesmated with me and WACC of Target? Choose the correct expression below. If none are correct, select "None of the Above are correct swer A: TR0.01 +1.4 x 0.08 0.1220 - 12.20% WACC = 0.25 x 0.05 +0.75 x 0.1220 -0.1040 10.40% Answer B: re=0.01 +1.4 x 0.08 0.1220 12.20% WACC 0.25 x 0.05 x (1 - 0.26) + 0.75 x 0.1220 = 0.1008 - 10.08% Answer C: re=0.01 +1 0.08 = 0.1220 = 12.20% W ACC = 0.75 x 0.05 x (1 - 0.26) +0.25 x 0.1220 = 0.0583 - 5.83% Answer D: None of the Above are Correct

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