U Question 7 1 pts Droz's Hiking Gear, Inc. has found that its common equity capital shares have a beta equal to 1.5 while the risk-free return is 8 percent and the expected retum on the market is 14 percent. It has 7-year semiannual maturity bonds outstanding with a price of $950 that have a coupon rate of 7 percent. The firm is financed with $100 million of common shares (market value) and $30 million of debt. What is the after-tax weighted average cost of capital for Droz's, if it is subject to a 35 percent marginal tax rate? Round your intermediate calculation to five decimal places and final percentage answer to two decimal places, 16.18% 14 27% 18.61% 13.27% Question 8 1 pts Preferred stock valuation: Ajax Company has issued perpetual preferred stock with a par of $100 and a dividend of 7 percent. If the required rate of return is 8 percent, what is the stock's current market price? $87.50 O $68.75 $81.25 $112.50