Q2: Company X, whose tax rate =20%, is considering a lease of 9 years, which has constant yearly payments of $22,700 (note: financing costs are $23,500 to buy). Assuming company X 's before-tax leasing rate =8% and the net cost of buying =$115,200, should company X lease the asset? Q3: STK Inc., who is taxed at $0.20 of every dollar earned, has a debt-to-equity ratio of 1/5, where its equity totals $1,200,000 - debt and equity investors require 8.5% and 9.75%, respectively; what is YSJ Inc.' WACC, and how are your computations impacted if the D/E is lowered to 15% (show all your work)