Question 17 (Mandatory) (6 points) The following refers to questions 17-19 Jack's Construction Co. has 10-year bonds outstanding that are selling at $966.75. Bonds have a coupon rate of 8% paid semi-annually and a face value of $1000. The tax rate is 35%. What is the after-tax cost of debt? OA) 4.10% B) 4.30% C) 5.53% D) 8.50% E) 11.78% Question 18 (Mandatory) (6 points) The company also has common stock outstanding. The stock has a beta of 1.1. The U.S. Treasury bill is yielding 4% and the market risk premium is 8%. What is the cost of equity using CAPM? 17.10% O A 12 80% B) 14.80% C) 16.60% D) 11.77% E) Question 19 (Mandatory) (6 points) What is Jack's weighted average cost of capital if the D/E ratio is 0.5? OA) 7.10% 7.39% B) 10.38% C) 10.65% D) 11.37% E)