Question 13 1 points Save Answer Rogot Instruments makes fine violins and cellos. It has $1.3 million in debt outstanding equky valued at $2.7 million and pays corporate income tax at rate of 336. Its cost of equity is 12% and its cost of debt is 6. What is Rogot's pre-tax WACC? A 9.41% OB. 11.30% C. 13.52% OD. 10.05% Question 14 1 points At the end of 2019, Treefern Ltd. had 18B-rated. 5-year bonds outstanding with a yield to maturity of 15%. At the time, government bonds with similar maturity had a yield of 2%. Suppose the expected return of the market portfolio is 7 and you believe Treefern Ltd.'s bonds have a beta of 0.45. if the expected loss rate of these bonds in the event of default is 5. What annual probability of default would be consistent with the yield to maturity of Treefern Ltd's bonds at the end of the year 2019? O A 23.4% B. 20.3 C. 22.74 D. 19.0M Question 15 1 points Save Answer Flagstaff Enterprises expected to have free cash flow to the firm in the coming year of $8 million, and this free cash flow is expected to grow at a rate of 3% per year thereafter Flagstaff has an equity cost of capital of 134, a debt cost of capital of 7, and it is in the 35. corporate tax bracket. If Flagstaff currently maintains a 1.00 debt to equity ratio, then the value of the Flagstaff's levered equity is closet to A $56 milion OB. 569 million OC. 580 million D. $138 milion Question 16 1 points Your firm is planning to invest in a new power generation system. Galt Industries is an all equity firm that specializes in this business. Suppose Galt's equity beta is 0.75, the risk-free rate is 3%, and the market risk premium is 6%. If your firm's project is all equity financed, then your estimate of your cost of capital is closest to OA 7.50% 8.5.25% C. 6.00% 0.6.75