.NEED ANSWER ASAP / ANSWER NEVER USED BEFORE

a.)

Fiske Roofing Supplies' stock has a beta of 1.23, its required return is 11.25%, and the risk-free rate is 4.30%. What is the required rate of return on the market? (Hint: First find the market risk premium.)

Select the correct answer.

a. 9.95%

b. 9.88%

c. 10.02%

d. 10.09%

e. 10.16%

b.)

Kenny Electric Company's noncallable bonds were issued several years ago and now have 20 years to maturity. These bonds have a 9.25% annual coupon, paid semiannually, sells at a price of $1,075, and has a par value of $1,000. If the firm's tax rate is 25%, what is the component cost of debt for use in the WACC calculation?

a. 6.03%

b. 6.67%

c. 5.73%

d. 6.35%

e. 5.44%