Question 1 0.5 pts If you use the WACC as the discount rate, you would bias against projects with risks, o lower O higher Question 2 0.5 pts Use the following information for the next 2 questions: A corporation has 10,000 bonds outstanding with a 6% annual coupon rate, 8 years to maturity and a $1,100 market price. The YTM of the bond is 4.48%. Coupons are paid annually. The company's 500,000 shares of common stock sell for $25 per share and have a beta of 1.5. The risk free rate is 4%, and the market return is 15%. Assuming a 21% tax rate What is the company's cost of equity (%)? (Hint: use CAPM with beta = 1.5) 16.0 0 20.5 18.7 0 173 19.1 Question 3 1 pts What is the company's WACC (%)? (Hint: Bond value, D = 11,000k, Equity value. E = 12,500k, after-tax cost of debt = Rp 1 - tax) where Rp is the bond yield] O 14.74 O 1256 13.87 O 11.08 O 10.74