Question 20 1 pts Smucker J.M. Co has a beta of 2. and the expected market return is 0.24. If Treasury bills are currently yielding 5 percent, find the cost of capital for Smucker J.M. Co (round your answers). 31.4% 44.1% 43.0% 37.2% none of the answers is correct Question 21 1 pts Which of the following statement is correct? Increasing the firm's beta will increase the firm's weighted average cost of capital. All the answers are incorrect. o ooo Both creditors and preferred stockholders have a claim on the residual earnings, The cost of capital arises because the investors, such as common and preferred stockholders, have to pay the firm dividend payments. Bondholders or bankers take a greater risk than preferred stockholders and demand a correspondingly greater rate of return