USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 9-11 A firm is 70% equity and 30% debt. The firm's marginal tax rate is 40%. Their bonds trade for $990, mature in nine years, have a par value of S1,000, a coupon rate of 8.00% and pay semi-annually. The firm's common stock trades for $27 and just paid a dividend of S5.00. Dividends are expected to grow at 3% forever. 9. (1 point) The firm's after-tax cost of debt is a. 4.895 b. 5.090 c. 5.293 d. 5.491 e. 5.698 10. (1 point) The firm's cost of equity is %. a. 19.632 b. 20.407 c. 21.265 d. 22.074 e. 22.808 11. (1 point) The firm's WACC is a. 16.062 b. 16.606 c. 17.251 d. 17.847 e. None of the above 12. (1 point) Blue Ridge Designs is considering the purchase of a security system. There are two options. The GEB7 costs $30,000 today, will cost $1,500 per year for eleven years to operate and will be sold for $6,000 in eleven years. The SJB4 costs $42,000 today, will cost $1,400 per year for thirteen years to operate and will be sold for $7,500 in thirteen years. The equivalent annual cost of the worse choice is $_ _. Use a discount rate of 6% p.a. a. 4.903.03 b. 5,341.83 c. 5,598.08 d. 5,747.12 c. 6,365.00