QUESTION 91 H&D is a U.S. multinational company with the following debt and equity components in its consolidated capital section. The company's cost of equity is 18%. 10 year 6% Euro Bonds (euros) selling at par 20 year 8% Pound Bonds (pounds) selling at par Common Stock Retained Earnings 8,000,000 4,000,000 $30,000,000 $5,000,000 Spot Rate (Sleuro) Spot Rate (SIE) Tax Rate $1.2ieuro $1.6VE 30.00% What is the weight of equity financing? 73.50% 68.63% 31.37% 26.50% QUESTION 92 H&D is a U.S. multinational company with the following debt and equity components in its consolidated capital section. The company's cost of equity is 18%. 10 year 6% Euro Bonds (euros) selling at par 20 year 8% Pound Bonds (pounds) selling at par Common Stock Retained Earnings 8,000,000 4,000,000 $30,000,000 $5,000,000 Spot Rate (Sleuro) Spot Rate (SIE) Tax Rate $1.2feuro $1.6VE 30.00% What is the WACC for the H&D Company? 10.67% 14.51% 13.85% 15.78%