Question 7 What proportion of a firm is equity financed if the WACC is 14%, the before-tax cost of debt is 10.77%, the tax rate is 21%, and the required return on equity is 18%? Not yet answered Marked out of 1 Select one: a. 77.78% P Flag question b. 54.00% O c. 70.26% d. 57.86% e. None of the solutions is correct. Question 8 Not yet A stock is expected to return 11% in a normal economy, 19% if the economy booms, and lose 8% if the economy moves into a recessionary period. Economists predict a 65% chance of a normal economy, a 25% chance of a boom, and a 10% chance of a recession. What is the expected return on the stock? answered Marked out of 1 Select one: P Flag question a. 12.06% b. 11.10% C. None of the solutions is correct. O d. 11.98% e. 11.23%