Question 11. In the equation below, the denominator can be considered the decimal value of risk. Adding the value of 1 to the denominator's decimal value mathematically decrease the quotient, e.g., 10/0.1=100 and 10/1.1=9.09. The quotient is decreased because the denominator discounts the numerator. The denominator is often called the discount rate. Explain why. (This question is worth 2 points.) n Asset Value = Net Cash Flowi (1 + Rate) Question 12. Given the information below, what is the weighted average cost of capital for Company ABC? (This question is worth 3 points.) Treasury Note 5% Tax Rate 30% Debt Market Risk Premium 2% Equity Market Risk Premium 7% Company ABC Capital Structure Debt Preferred Common $20,000 $30,000 $75,000