Use the following data for questions 10-16. ABC Corp's stock is currently trading at $40 per share. Assume that the cash flows for the firm are expected to grow at 8% per year for 2 years. Thereafter, the firm is expected to enter a stable-growth phase with a cash flow growth rate of 3%. Effective tax rate is 25%. The firm's debt carries a BBB credit rating. All in $ millions except per share amounts and percentages Net Income Capital Expenditure Depreciation expense Interest expense Change in Accounts Payable Change in Inventories Change in Accounts Receivable MacBook Pro $250 $25 $50 $8 - $45 - $25 $50 All in $ millions except per share amounts and percentages Net Income Capital Expenditure Depreciation expense Interest expense $250 $25 $50 $8 Change in Accounts Payable - $45 Change in Inventories - $25 Change in Accounts Receivable - $50 Total debt $1000 Cash and cash equivalents $100 Shares outstanding Equity Beta Default spread on BBB rated firms Market risk premium Yield to maturity on 30-year Treasury MacBook Pro 88 1.25 1.5% 5.5% 2.5% Question 13 What is the WACC for ABC Corp? 5.784% 6.712% 7.965% 8.761% Question 14 Search or type MacBook Pro 3 pts 5 pts