Roxie Epoxy's balance sheet shows a total of $50 million long-term debt with a coupon rate of 8.00 % and a yield to maturity of 7.00%. This debt company has a market value of %55 million. The balance sheet also shows that that the company has 20 million shares of common stock, and the book value of the common equity (common stock plus retained earnings) is $65 million. The current stock price is $8.25 per share; stockholders' required return, r_s, is 10.00%; and the firm's tax rate is 40%. Assuming the firm is currently at its target capital structure, what WACC should Roxie use to evaluate capital budgeting projects? a. 8.55% b. 7.26% c. 7.56% d. 7.88% e. 8.21% Micalah's Crafts needs $225,000 today to purchase some new equipment. They are planning on issuing 10-year bonds with a 8% coupon rate and semi-annual interest payments. The current market rate of interest is 6.5%. How many bonds must Micalah's Crafts sell to raise the money they need? a. 216 b. 225 c. 231 d. 234 e. 203