Question 3 (1 point) A company has 5,000 outstanding shares currently being traded at NASDAQ for $15 a share. Assuming a cost of equity = 11.2% based on the SML method and a cost of debt (before taxes) = 6.5% based on a bank loan currently with $20,000 debt outstanding, and zero preferred stocks, what is the company Weighted Average Cost of Capital? Use corporate tax rate - 21%. 8.84% 9.92% 06.41% 8.85% Question 4 (1 point) A firm, with a WACC = 8% and beta 1.2, is considering investing in a new project that offers IRR=9% and has a beta 1.5. Should the firm invest in the new project? Yes, because the project's IRR > the firm's WACC No, because the project's beta > the firm's beta OI do not know, I need to calculate the Adjusted WACC which should be greater than 8% I do not know, I need to calculate the Adjusted WACC which should be less than 8% Question 5 (1 point) What would the current price be for a 20-year, 8% coupon semiannual bond purchased 5 years ago if comparable bonds currently offer YTMs around 6%? 1,313.95 1,373.87 896.20 1,376.54