Question 26 You are a manager for Oaksword.Inc, a publishing company. You are trying to calculate a discount rate to apply to a new project. The project involves selling a new type of electronic book on the internet. The value of debt is $30,000,000, the book value of equity is $100,000,000, and the market capitalization is $150,000,000. Assuming the cost of equity for the company and for this project is 1.12 and 2.04, respectively. The corporate tax rate is 35%. The three-month treasury-bill rate 8%. The rate of return on the market portfolio is 15%. The firm's bonds are rated BBB-grade. The yield spread, i.e.. the difference between the yield to maturity of a bond and the risk free rate, for an average BBB firm is 2.5% What is the debt to total assets ratio of the company? Edit View Insert Format Tools Table 12pt Paragraph A > butev O words 11 Question 27 1 pts What is an approximate risk free rate and market risk premium? Edit View Insert Format Tools Table 12pt Paragraph BI U ALT BOY ZA DE O words Question 28 1p What is the cost of equity for this project? Edit View Insert Format Tools Table 12pt Paragraph BI U Atv 20 O words > Vit Question 29 1 pts What is the cost of debt for this project? Edit View Insert Format Tools Table 12pt Paragraph B IV ATV Y DY P O words Question 30 What is the weighted average cost of capital that should be applied to the project? Edit View Insert Format Tools Table 12pt Paragraph B I UA & Tev 20