Question 3 3.34 pts Pinnacle Corp. has 5 million outstanding shares of common stock which has a beta of 1.05. The current market price is $20 per share and the book value per share is $12. It has a bond issue outstanding with a face $50 million which currently trades at a premium price of 110. Its coupon rate is 6.0% and has a yield to maturity of 5.25%. If you were asked to calculate the weighted cost of capital what market weights would you use? Equity of 64.5% and debt of 35.5% Equity of 66.7% and debt of 33.3% Equity of 52.2% and debt of 47.8% Equity of 54.5% and debt of 45.5% Question 4 3.34 pts You are preparing a discounted free cash flow analysis for Lock Inc. For year 1 of the projection period Lock Inc. expects EBITDA of $570,000, depreciation and amortization of $35,000, outstanding debt of $150,000, capital expenditures of $50,000, an increase in working capital of $15,000, 115,000 shares outstanding, cash of $15,000 and a tax rate of 25%. What would be the free cash flow for Lock Inc. in Year 1? $401,250 O $471,250 $336,250 $371.250