Q9) Antarctic Chimpanzees are looking to calculate the weighted-average cost of capital for their business. You have been provided with the following information. The risk-free rate is 3%. The market return is 8%. The tax rate is 30%. Market Value Book Value Beta Debt $300m $250m 0.3 Equity $500m $375m 1.2 What is the after-tax WACC? A) 7.31% B) 5.63% C) 6.64% D) 8.57% Q10) Which of the following scenarios describe when the WACC of a business should be used as a discount rate for one of the business's projects. A) The WACC of a business should is the relevant discount rate for all company projects B) The WACC of a business should only be applied to projects that are at least as risky as the business C) The WACC of a business should only be applied to projects that are the same risk as the business D) The WACC of a business should never be applied to projects, regardless of their risk