ABC Inc will raise funds to finance project using 50% bonds and 50% stocks. The cost of bond financing 12% (pre-tax), and the cost of stock financing is 20% ABC pays 40 tax, the weighted average cost of capital for ABC is a) 16.0M b) 14.0% Od 12.4% 12 d) 13.6% 5 e) 15.0% Question 11 (6.6667 points) Jupiter Co. plans to raise funds by selling stocks. The dividend on the stocks expected for this year is $4 per share (D1 = $4). The dividends are expected to grow at the rate of 6% per year forever. If the stock is priced at $25 a share, the cost of stock financing lignoring flotation costs) must be a) 21% b) 22%