QUESTION 14 Suppose you are given the following two projects A and B with the cash flows below, if the cost of capital is 10%, what is the Profitability Index (PI) of projects A and B? Year Project A Project B 5000 -6000 1500 2500 2000 2500 2500 2500 3500 4000 1.622:1.409 O 1.457:1.492 1.639:1.340 1.532:1.528 O 1.457:1.340 QUESTION 15 A company's target capital structure consists of 30% debt 20% preferred stock and 50% common stock. The yield to maturity on this company bonds is 9%, the cost of preferred stock is 11% and the cost of retained earnings is 15%. The tax rate of this company is 40%. What is the WACC of this company? O 11.32% O 14.32% 13.32% O 12.3296 O 10.32%