Street Corporation's common stock has a beta of 1.27. The risk-free rate is 3.2 percent and the expected return on the market is 12.68 percent. What is the firm's cost of equity? A. 11.49 percent B. 12.84 percent C. 15.24 percent D. 17.67 percent E. 19.30 percent Silo Mills is an all-equity financed firm that has a beta of 1.14 and a cost of equity of 12.8 percent. The risk-free rate of return is 2.8 percent, and the market risk premium is 8.77%. The firm is currently considering a project that has a beta of 1.03 and a project life of six years. What discount rate should be assigned to this project? A. 13.33 percent B. 11.84 percent C. 13.62 percent D. 13.84 percent E. 12.09 percent Phillips Equipment has 75,000 bonds outstanding that have 7.5% coupons and are selling at par (with a $1000 principal value per bond). The company also has 750,000 shares of 6 percent preferred stock (with a $100 par value or preferential liquidation value) and 2.5 million shares of common stock outstanding. The preferred stock sells for $64 a share. The common stock has a beta of 1.21 and sells for $44 a share. The U.S. Treasury bill is yielding 2.3 percent and the return on the market is 11.2 percent. The benefits of debt offset the financial distress costs of financing more of the company's activities with debt (that increase the chance of bankruptcy and related losses). What is the firm's weighted average cost of capital? A. 9.69 percent B. 10.52 percent C. 11.18 percent D. 11.30 percent E. 11.56 percent