Question: please answer both question with clear respond Debt is riskier than equity, and therefore only higher returns on debt are required in order to encourage

please answer both question with clear respond

"Debt is riskier than equity, and therefore only higher returns on debt are required in order to encourage investors." True False QUESTION 16 "ABC Company can sell common shares at $30 per share and can obtain debt funding at 8 percent, it has a marginal income tax rate of 25 percent. The yield on US Treasury securities is 3 percent. The market risk premium is 6.0 percent, and the firm s beta is 0.9 . It has a targeted debt-to-equity ratio of 1:1. What is its cost of equity? Enter your answer in whale numbers rounded to two decimal places if necessary

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