Spinner Bike has a target capital structure of $46$ percent common stock, $5$ percent preferred stock, and the balance in

debt. Its cost of equity is $15\mathrm{.}8$ percent, the cost of preferred stock is $8\mathrm{.}3$ percent, and the after$-$tax cost of debt is $6\mathrm{.}8$

percent. What is the WACC given a tax rate of $23$ percent?

A$.9\mathrm{.}89\%$

B$.10\mathrm{.}43\%$

C$.11\mathrm{.}02\%$

D$.11\mathrm{.}38\%$

E$.12\mathrm{.}17\%$

Healthy Grains Inc. is an all$-$equity financed firm with a beta of $1\mathrm{.}08$ and a cost of equity of $12\mathrm{.}58$ percent. The risk$-$free

rate of return is $3\mathrm{.}6$ percent. What discount rate should the firm assign to a new project that has a beta of $1\mathrm{.}22?$

A$.13\mathrm{.}33\%$

B$.13\mathrm{.}58\%$

C$.13\mathrm{.}74\%$

D$.14\mathrm{.}14\%$

E$.14\mathrm{.}36\%$

Kissena Sofa is an all$-$equity financed chain of retail furniture stores. Couches $R$ Us produces furniture

and is the primary supplier to Kissena. Kissena has a beta of $1\mathrm{.}62$ as compared to Couches R Us

beta of $1\mathrm{.}43.$ The risk$-$free rate of return is $3\mathrm{.}1$ percent, and the market risk premium is $7\mathrm{.}6$ percent. What

discount rate should Kissena Sofa use if it considers a project that involves the manufacturing of furniture.

A$.13\mathrm{.}97\%$

B$.12\mathrm{.}92\%$

C$.13\mathrm{.}50\%$

D$.14\mathrm{.}08\%$

E$.14\mathrm{.}54\%$