Use the following information to answer questions 9 through 10. A corporation has 10,000 bonds outstanding with an 8% annual coupon rate, 10 years to maturity, a $1,000 face value, and a $970 market price. The company's 500,000 shares of common stock sell for $45 per share, have a beta of 1.5, the risk-free rate is 5.5%, and the market risk premium is 7%. 9. What is the cost of equity for this corporation? 2. 6.00% b. 12.00% c. 16.00% d. 16.50% e none of the above 10. Assuming a 30% tax rate, what is this corporation's after-tax cost of debt? a. 2.69% b.4.48% 6.5.07% 4.5.92% c. none of the above 11. Calculate the required rate of return for Mercury Inc., assuming that the risk free rate of return is 5%, the expected market return is 11 percent, and Mercury has a beta of 1.66. a. 15% b. 16% c. 17% d. 18% e. None of the above 12. Chuckney Industries has a target capital structure of 60% debt and 40% common equity. Their cost of equity is 12% and the yield to maturity on the company's bonds is 9%. If the current corporate tax rate is 40%, what is their weighted average cost of capital? a. 8.04% b. 10.5% c. 10.8% 11.5% c. none of the above