You show up to a party where the most interesting people are discussing weighted average cost of capital. Naturally, you listen in! Who is misinformed? Sam explains that WACC can apply to a firm that issues common stock, preferred stock, and debt. Pat expresses the WACC formula as follows: WACC =E/VRe+D/VRd(1Tr)+ P/V*Rp Jill asserts that a decrease in a firm's WACC will increase the attractiveness of the firm's investment options. Bob tells us that WACC is an appropriate discount rate for a project with a beta equal to the firm beta. John says that WACC is almost always lower than either the cost of equity or the cost of debt due to the effects of the tax shield. Question 11 (1 point) Crying Baby Inc., plans to pay an annual dividend of $3 per share and common equity currently sells for $81.73 per share. If the market rate of return is 12 percent, what is. the capital gains yield? 8.33% 3.67% 15.67% 9.00% 9.85%