Question 7 5 pts 7. The risk-free rate (Re) is 2%/Yr, the expected return on the market, Rm is 9%/Yr. The beta of the firm's stock is 1.0. The firm's cost of debt is 4%, and the tax rate is 30%. We also know that the WACC is 6.5%. The firm only has equity and debt in its capital structure. What is the weight of equity? O 40.32% O 45.125 O 59.68% O 50.00% Question 8 5 pts 8. You are a money manager managing $20,000,000 in assets. Your investment portfolio consists of 10% T-bills (with a beta = 0), 20% bonds (with an estimated beta -0.40), 40% value stocks (with an estimated beta -0.8), and 30% growth stocks (with an estimated beta - 1.50). The risk-free rate, RF, is 3.0%. The market risk premium (RPM RM -RF) is 5.0%. If you switch $1 million out of T-bills and Invest $500,000 of it in growth stocks and $500,000 of it in value stocks, what would be the required rate of return on your portfolio based on CAPM? 07.54% O 3.00% O 5.00% O 7.25% Question 9 5 pts