Weghorst Co. is a 100% equity-financed company (no debt or preferred stock); hence, its WACC eqals its cost of common equity. Weghorst Co.'s retained earnings will be sufficient to fund it's capital budget in the foreseeable future. The company has a beta of 1.50, the risk-free rate is 5.0%, and the market return is 6.5%. What is Weghorst Co's cost of equality?

A. 16.25%

B. 24.13%

C. 8.75%

D. 7.25%

Weghorst Co is financed exclusively using equity funding and has a cost of equity of 10.65%. It is considering the following projects for investment next year:

Each project has average risk, and Weghorst Co. accepts any project whose expected rate of return exceeds its cost of capital. How large should next year's capital budjet be?

A. $34,550

B. $24,225

C. $36,825

D. $56,250