Omega Corp. has a market capitalization of $250 million, and $100 million in outstanding debt. The firm's cost of equity and cost of debt are 15% and 5%, respectively. The corporate tax rate is 35%. As a project manager, you can identify Omega Corp as a comparable firm for the project you are evaluating. If the project is all-equity financed, the project's cost of capital is closest to: A. 16.1196 B. 11.649 C. 12.1496 OD. 15.00% Nielson Motors is considering an opportunity that requires an investment of $1,000,000 today and will provide $250,000 one year from now, $450,000 two years from now, and $650,000 three years from now. If the appropriate discount rate is 10%, then the net present value (NPV) of this opportunity is closestto: O A. $87,528.17 OB. $100,000.11 OC. $90,135.24 OD. 596,147.15 Using the Modigliani-Miller (MM) theory in a perfect market, you can identify a current situation in the market as follows. ABC Industries and XYZ Technology have identical assets that generate identical cash flows. ABC Industries is an all-equity firm, with 15 million shares outstanding that trade for a price of $20 per share. XYZ Technology has debt of $100 million as well as 20 million shares outstanding that trade for a price of $12 per share. To exploit this current situation for a risk-free profit, you understand that you can use homemade leverage and should take the following transactions: O A. Sell ABC Stock; Buy XYZ Stock; and Borrow OB. Sell ABC Stock; Buy XYZ Stock and Lend OC. Buy ABC Stock: Sell XYZ Stock; and Borrow D. Buy ABC Stock; Sell XYZ Stock; and Lend