Question 7 2.5 pts Cosmo has a weighted average cost of capital of 8.10%. Estimate Cosmo's cost of equity given the following information: The firm's effective tax rate is 25%, they have an equal mix of debt and equity, the required return on the market portfolio is 9%, Cosmo has a before-tax cost of debt of 6%, and the risk-free rate of return is 3%. 11.10% 11.40% 10.80% 11.70% Question 4 2.5 pts Wonderful World has just recently raised money abroad for the first time in the history of the firm. Prior to the recent equity issue abroad, the firm had a D/V ratio of 40%, an effective tax rate of 30%, a before-tax cost of debt of 9%, and a domestic beta of 1.3. The expected return on the market portfolio was 13% and the risk-free rate was 5%. After the equity issue, Wonderful World has a D/V ratio of 50%, their after-tax cost of debt has not changed, nor has the effective tax rate, the firm's international beta is 1.20, the expected return on the market portfolio is only 12%, and the risk-free rate is still 5%. What is the change in the firm's WACC after the international equity issue? 1.910% 2.260% 3.83596 2.085%