Question Completion Status: XYZ Corporation is issuing a $1,000 par value bond that pays 8% interest annually. Investors are expected to pay $975 for the 10-year bond. Bender and Co. can expect to pay an additional risk premium of 4.2% on common stock. What is the firm's cost of equity capital? 13.44 13.60 12.58 8.40 none of the available choices QUESTION 2 10 points S Calculate the opportunity cost of capital for a firm with the following capital structure: 30% preferred stock, 50% common stock and 20% debt.The firms has a cost of debt of 8.03%, a cost of preferred stock equal to 10.81% and a 14.29% cost of common stock. The firm has a 37% tax rate. You answer should be entered as a %, for example 15.48% Click Save and Submit to save and submit. Click Save All Answers to see all anemare