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QUESTION 9 A company has equity bota 08 and market value of equity 5350 million. The yield to maturity on this company's debt is 8.4%.

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QUESTION 9 A company has equity bota 08 and market value of equity 5350 million. The yield to maturity on this company's debt is 8.4%. The market value of that debt is $250 milion. The risk free rate is 4% and the expected return on the market is 12%, the tax rate of this company is 40% What is the WACC? O 8.17% 10.03 12 83% 1470% QUESTION 10 A company is evaluating two independent projects for capital investment purposes. If the company has only 585 million to invest, and its required return is 10 percent by how much the company's value wil increase? Al values are in millions 1 Project 1 Project 2 050 10 210 10 340 440 30 12473 58.54 O 12145 1764 $1291 o E O hp

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