Question 8 5 pts Our firm's capital structure based on book values is 45% debt, 5% preferred stock and 50% equity. The firm's before tax cost of debt is 8%, its cost of preferred stock is 9%, its cost of equity is 12%, and its tax rate is 40%. Currently, the market value of debt is $300 million, the market value of preferred stock is $100 million, and the market value of equity is $600 million. What would be the firm's weighted average cost of capital (WACC) based on this information? 8.61% O 10.50% 9.67% O 10.05% 9.54% Question 9 5 pts Elsinore Company is considering the purchase of a new brewing equipment. The new brewing equipment will be depreciated using the MACRS 7-year class. The equipment has an estimated life of 6 years, it costs $100,000, and Elsinore plans to sell the brewing equipment at the end of the sixth year for $10,000. The new brewing equipment is expected to generate new sales of $30,000 per year and the firm's costs will go up by $1,000 per year. In addition, the company will need to increase accounts receivable by $2500 and inventory will also increase by $1500. The company's tax rate is 20 percent. (Numbers in parentheses are negative) 1 MACRS Class Year 3yr 5yr 7yr 33.33% 20.00% 14.29% 2 44.45% 32.00% 24.49% 3 14.81% 19.20% 17.49% 4 7.41% 11.52% 12.49% 5 11.52% 8.93% 6 5.76% 8.92% 7 8.93% 8 4.46% What would be the cash flow from assets (CFFA) at t=0? ($104,000) O (102,500) ($100,000) O ($96,000) O ($ 101,000)