Question 2 8 pts You want to calculate the cost of debt for a firm with bank debt and long-term bond outstanding. The $100 million revolving line of credit is priced at Libor + 150 basis points and with $25 million utilized. The company has a $150 million 5-year bond that pays interest semi-annually. The bond has a 6% coupon. $1,000 par value and is currently priced at 101.5 as a percent of par. The Libor reference rate is currently 0.50%. What is the blended average cost of debt for the firm. 5.13% 4.19% 5.73% 2.50% 7 pts Question 3 Acme Corp has a target capital structure of 30% debt and 70% equity. It has $300 million in bonds outstanding with a yield of 8% and 50 million shares of stock outstanding with a current market price of $14.00 per share. The company's beta is 1.25 and the risk-free rate of interest is 4% with a market risk premium of 6%. The firm has a tax rate of 25%. The company is looking to raise $250 million to build a second factory. The new factory will increase output substantially. The table below shows the Mathic proiect