Using return observations of 5.93%, 8.79%, 1.57%, 0.89%, 0.65%, 3.53%, 8.50%, 1.25%, 0.18%, 6.73%. Above, what is the standard deviation of returns?

Select one:

a. 2.96%

b. 3.12%

c. 3.39%

d. 0.05%

Your company has issued debt with a market value of $4.2 million, preferred shares with a market value of $5.4 million and equity with a market value of $34 million. Expected returns on these financings are, respectively, 8%, 6% and 12%. The companys income tax rate is 30%. What is the companys weighted average cost of capital?

Select one:

a. 10.64%

b. 9.75%

c. 11.73%

d. 12.00%