The market has an expected rate of return of 12.6 percent. The long-term government bond is expected to yield 4.8 percent and the U.S. Treasury bill is expected to yield 2.7 percent. The inflation rate is 3.2 percent. What is the market risk premium? 9.3 percent O 7.8 percent O 8.5 percent O 9.4 percent 9.9 percent dering opanng h be tinancad slaty with dabt in onder tar tha projact to have a posna NPV procbly be put cn hald urdl itcoat of capital can be lewered be [cepted immediately. Black River Tours has a capital structure of 60 percenl comon slock 5 percent preferred slock, and 35 percent debl. The dividend payaut ratio is 30 percent the company's beta is 1 21, and the lax rate is 21 percernt Given this, which one of the fallowing slatements is correct? The alerlax coel of debtwl be grealer than the current yiek-lo-maturity on the company's culslandng bonds. The cost afaquity is unaffected by a change in the company's tax rate The weighted average cost of capital will remain constant as long as the company's capital structure remains constant The cost of equity can only, b estimated using the capital asset pricing model O The company's cost of prefered is most likely less than the company's actual cost of debt