Salem Inc. is currently discussing converting its domestic operations to a multinational one. It has a targeted capital structure of 65% common stock and the remainder in debt to facilitate the expansion. The company's global cost of common equity is 17.5% and its pretax cost of debt is 12%. The company also has a 40% marginal tax rate. What would be Salem's weighted average cost of capital if it multinationalizes? 15.25% 13.40% O 15.68% 13.90% 12.56% Question 7 2 pts Farmville Inc. is a U.S. multinational with a weighted average cost of capital of 12.25%. The company's global cost of common equity is 15% and its pretax cost of debt is 9.5%. If the company falls in the 40% marginal tax bracket, what is its debt to equity ratio? Hint: debt to equity ratio is computed at total debt + total equity 0 2.75% 0 26.50% 41.98% O 17.48% 20.70%