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Please show the calculate step and answer 1. A firm requires an investment of $30,000 and borrows $15,000 at 7%. If the return on equity

Please show the calculate step and answer

1. A firm requires an investment of $30,000 and borrows $15,000 at 7%. If the return on equity is 19%, what is the firm's pretax WACC?

Select one:

A. 13%

B. 6.5%

C. 15.6%

D. 18.2%

2. A firm has a market value of equity of $30,000. It borrows $7500 at 8%. If the unlevered cost of equity is 16%, what is the firm's cost of equity capital?

Select one:

A. 9.0%

B. 18.0%

C. 21.6%

D. 25.2%

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