Question: please help in any question only number 4 (12 pts) 2. When deciding whether to issue debt or equity, discuss the factors that would favor

please help in any question only number 4

(12 pts) 2. When deciding whether to issue debt or equity, discuss the factors that would favor issuing debt. (10 pts) 3. Explain the significance of the relationship between weighted average cost of capital (WACC) and the return on invested capital (ROIC). (15 pts) 4. Suppose that you are considering the purchase of a 20-year Treasury bond, a 20-year Walmart Inc. corporate bond, and the common stock of Walmart. The current risk premiums are provided: 3.00% 2.00% Maturity risk premium Default risk premium Real risk free rate Seniority risk premium Inflation premium Liquidity premium 2.00% 5.00% 2.00% 1.00% Required: Determine the required rate of return for each security based on the information provided above

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