Question 25 - Fin_q14-5-47788.1.1 Assume a Modigliani and Miller (MM) world with perfect capital markets. Majestro Classical Music Inc (MCM) has no debt, a total equity capitalization of 500 million, and an equity beta of 0.75. Included in MCM's assets is 100 million in cash and risk-free securities. The risk-free rate is 3% and the expected return on the market is 9%. MCM's weighted average cost of capital (WACC) is closest to: 7.5% B 8.6% 9.8% D 11.4%