Question 24 2 pts Suppose you are offered a bank loan that will require you to pay 7% interest compounded monthly. Which of the following is closest to the EAR charged by the bank? O 5.78% O 8.68% O 7.23% O 14.46% Previous Next Saved at 14:37 Submit Question 25 3 pts Epic Foods plan on releasing a new range of sugar-free candies. To produce the new candy range, equipment costing $2 million (inclusive of delivery and installation costs) will need to be acquired. The equipment will be depreciated on a straight-line basis over four years. In addition to the above, $5 million will be spent in the first year on advertising the new candy line. The new candies are expected to bring in revenues of $4 million per year for the next four years with production and support costs totaling $1.5 million per year. If Epic Foods' tax rate is 35%, what are the incremental free cash flows in the second year of this project? O $3.300 million O $1.800 million O $2.000 million O $1.300 million Minut Question 26 3 pts Assume JJ Ltd. shares have a market capitalisation of $65 billion. The company just paid a dividend of $0.40 per share and each share trades for $25. The growth rate in dividends is expected to be 7% per year. Also, JJ has $10 billion of debt that trades with a YTM of 7%. If the firm's tax rate is 40%, compute the WACC? ho O 7.7% O 8.11% O 8.92% O 9.33%