please just choose the correct answers to finish this six mutiple choice

There are two equally important investment projects, X and Y, in ABC company. Project X has a beta of 0.9 and project Y has a beta of -0.1. The risk-free rate is 3% and the market risk premium is 896. What is the cost of capital of ABC company? Select one: Oa 62% O b.5% O c5.8% Clear my choice A firm that uses one discount rate for all projects may Select one: Oa incorrectly accept projects that incur losses. Ob. incorrectly reject projects that generate positive cashflows. O c incorrectly reject projects with positive NPVS. According to M&M Proposition I (No Taxes), Select one: O a. WACC is not affected by an increase in leverage because the effect of an increase in leverage on the weighted cost of debt is offset by the increase in cost of equity. O b. WACC is not affected by an increase in leverage because the effect of an increase in leverage on the weighted cost of equity is offset by the increase in cost of debt. O c. WACC is not affected by an increase in leverage because investors are unable to do homemade leverage. Firms in financial distress would Select one: O a. reject a project with positive NPV because shareholders have a lot to gain but very little to lose from the project. O b. accept a project with negative NPV because shareholders have something to gain but nothing to lose from the project. O c reject a project with positive NPV because this is in the best interest of bondholders. ABC is a digital camera manufacturer. It has just paid a dividend of $0.77 per share. The number of outstanding shares is 700,000 and the market price of the stock is $9.2. The company is expected to increase dividend by 6.46% per year indefinitely. The company also has 8,000 zero coupon bonds outstanding (par value = $1,000) with 7 years to maturity currently selling at $469.2. The risk-free rate is 2.4% and the market risk premium is 6.9%. The beta of ABC's common stock is 1.2. The corporate tax rate is 35%. What is the weighted average cost of capital (WACC) of ABC using a conservative estimate of cost of equity? Select one: a. 11.6896 O b. 12.37% O c 13.6896 Deltona, USA is a development company that currently is financed with 100 percent equity. There are 15,000 shares outstanding at a market price of $50 a share. Deltona has earnings before interest and taxes (EBIT) of $20,000. The firm has decided to issue $250,000 of debt at a rate of 8 percent and use the proceeds to repurchase shares. Theresa owns 500 shares of Deltona and wants to use homemade leverage to offset the leverage used by Deltona. Theresa should Select one: O a. sell 133 shares and invest the proceeds into the debts of Deltona. O b. buy an additional 167 shares. O c sell 167 shares and invest the proceeds into the debts of Deltona