Phil the Shill is trying to sell you an investment. Phil tells you that his investment pays an APR of 10% with quarterly compounding. What is the effective monthly rate of return that would yield the same EAR as that implied by Phil's quoted rate?

	0.83%
	0.85%
	0.73%
	0.78%
	None of the above

The common stock of BMX is currently trading at $15 per share and the company has 1.5 million shares outstanding. Its preferred shares are trading at $7.48 per share and there are 600,000 preferred shares outstanding. BMX also has $4 million of debt outstanding with a yield to maturity of 10% and selling at par. If the required return on common stock is 12%, the return on preferred stock 10% and the company's tax rate 30%, what is the company's weighted average cost of capital?

	11.16%
	11.58%
	9.70%
	10.16%
	None of the above