21. Which statement below about the relationship between discount rate, WACC, and required rate of return is correct? a. At the firm level, the discount rate for a typical project is WACC. b. At the firm level, the WACC is the same as the required rate of return for equity. c. Higher corporate tax rate increases WACC. d. For a project with much higher risk than the firm itself, the discount rate is WACC. 22. The optimal capital structure has been achieved when the a. debt-equity ratio is equal to 1. b. weight of equity is equal to the weight of debt. c. cost of equity is maximized given a pre-tax cost of debt. d. debt-equity ratio is such that the cost of debt exceeds the cost of equity. e. the lowest possible weighted average cost of capital is achieved. 23. Consider an all-equity firm with beta of 1.2. Suppose that the risk-free rate is 2% and the market risk premium is 10%. Which statement below is wrong? a. The WACC of this firm is 14% b. For a project with a beta of 1.3, the appropriate discount rate should be above the WACC of the firm. c. For a project with a beta of 1.1, the appropriate discount rate should be below the WACC of the firm. If the firm raises more debt, then the equity beta will still be 1.2. d