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Question 2 (Mandatory) (2 points) Mitsu Corporation has 100,000 shares of common stock outstanding. The stock currently sells for $50 per share and has a

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Question 2 (Mandatory) (2 points) Mitsu Corporation has 100,000 shares of common stock outstanding. The stock currently sells for $50 per share and has a beta of 1.5. The firm has $4 million debt outstanding. The cost of debt before tax is 6.5%. The market risk premium is 7%. T- bills are yielding 4%. Tax rate is 35%. What is the weighted average cost of capital (WACC) of the firm? A) 11.50% B) 9.07% OC) 11.10% D) 10.36% E) 9.93%

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