QUESTION 7 10 points Save Answer Suppose Crocodella's stock has a beta of 0.57. If the risk-free rate is 3% and the expected rate of return on the market is 8%, what is Crocodella's cost of equity capital? 5.85% 28.56% 7.56% 17.85% 5.42% QUESTION 8 10 points Save Answer A firm is considering a new project that will require an initial outlay of $20 million. It has a target capital structure of 55% debt, 15% preferred stock, and 30% common equity. The firm has non-callable bonds that mature in five years with a face value of $1,000, an annual coupon rate of 8%, and a market price of $1080.64. The yield on the company's current bonds is a good approximation of the yield on any new bonds that are issued. The cost of preferred stock for the firm is 12.5% and the cost of common equity is 14%. The firm has a marginal tax rate of 40%. Determine the firm's WACC for this project 8.08 9.42 9.92 10.09 8.86