QUESTION 1 You were hired as a consultant to Gambono Company, whose target capital structure is 40% debt 15% preferred and 45% common equity. The after-tax cost of debt is 6.00%, the cost of preferred is 7.50%, and the cost of retained earnings is 12.00%. The fi WACC? rm will not be issuing any new stock. What is its a. 7.68% O b. 8.93% O c. 6.69% d. 6.96% O e. 7.59% QUESTION 2 Suppose you borrow S10,000 right now to start a business. If the terms of the loan require you to pay back $13,000 in 5 years, what is the implied annual compound interest rate? O 6.00% 5.39% O 30.00% O 5.00% None of these