XYZ's cost of retained earnings is 15% and its marginal tax rate is 40% The company's before tax cost of debt is 10%. The long-term debt currently sells at book value. The firm has 600 shares common stock outstanding that sells for $5 per share. Calculate XYZ's WACC using market values weights. Assets Cash $140 Accounts Receivable 240 Inventories 360 Plant 2, 260 Total assets 3,000 Liabilities and Equity Long-term debt $1,000 Common equity 2,000 a. 12.3% b. 13.8% c. 12.0% d. 12.8% e. 13.4% Reynolds Bikes is considering a project that has the following cash flow and a WACC of 10%. What is the project's discounted payback? a. 2.10 years b. 2.08 years c. 2.28 years c. 2.28 years d. 2.36 years e. 2.41 years