Question 17 1 pts The CFO of Lenox Industries hired you as a consultant to help estimate its cost of capital. You have obtained the following data: (1) ra-yield on the firm's bonds = 7.00% and the risk premium over its own debt cost - 4.00%. (2) TRF = 5.00%, RPM - 6.00%, and b = 1.65.(3) D, - $1.20. Po = $35.00, and g - 8.00% (constant). You were asked to estimate the cost of equity based on the three most commonly used methods and then to indicate the difference between the highest and lowest of these estimates. What is that difference? 4.29% 3.74% 4.21% 3.90% 4.60% 1 pts Question 18 Bill Dukes has $100,000 invested in a 2-stock portfolio. $32,500 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta Is 0.70. What is the portfolio's beta? Do not round your intermediate calculations. Round the final answer to 2 decimal places 1.25 0.96 0.72 0.77 106 Question 20 1 pts Daves Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information. (1) The firm's noncallable bonds mature in 20 years, have an 8.00% annual coupon, a par value of $1,000, and a market price of $1,000.00. (2) The company's tax rate is 25%. (3) The risk-free rate is 4.50%, the market risk premium is 5.50%, and the stock's beta is 1.20.(4) The target capital structure consists of 35% debt and the balance is common equity. The firm uses the CAPM to estimate the cost of equity, and it does not expect to issue any new common stock. What is its WACC? Do not round your intermediate calculations. 11.03% 6.76% 10.32% 9.3296 8.90%