Sunny Co. is a 100% equity-financed company (no debt or preferred stock); hence, its WACC equals its cost of common equity. Sunny Co.'s retained earnings will be sufficient to fund its capital budget in the foreseeable future. The company has a beta of 1.80, the risk- free rate is 6.0%, and the market return is 7.8%. What is Sunny Co.'s cost of equity? O 3.32% O 14.12% 33.88% O 9.24% Sunny Co. is financed exclusively using equity funding and has a cost of equity of 13.05%. It is considering the following projects for investment next year: Project Required Investment Expected Rate of Return W $5,250 10.60% X $6,375 13.65% Y $4,575 14.10% Z $3,675 13.10% Sunny Co. is financed exclusively using equity funding and has a cost of equity of 13.05%. It is considering the following projects for investment next year: Project Required Investment Expected Rate of Return W $5,250 10.60% X $6,375 13.65% Y $4,575 14.10% Z $3,675 13.10% Each project has average risk, and Sunny Co. accepts any project whose expected rate of return exceeds its cost of capital. How large should next year's capital budget be? O $9,825 O $13,500 O $14,625 O $15,300