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Question 7 Assume that ZYZ inc. plan to invest a total of $4000000 to fund a project using two sources of financing: - Common equity

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Question 7 Assume that ZYZ inc. plan to invest a total of $4000000 to fund a project using two sources of financing: - Common equity in the amount of $3000000 - 20-year bonds in the amount of $1000000 If the XYZ Inc.'s cost of equity is 10 percent, cost of debt is 3 percent and the tax rate is 20 percent, what is an estimate of this firm's WACC? ? 8.1% O 4.05% 10.125% 5.265% 12.15\%

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