QUESTION $7$

"Continue considering Firm XYZ and your previous analysis. If you are to be conservative in your approach, what is the cost of Equity that you will use in estimating the WACC for Firm XYZ$?$ Express your answers in strictly numerical terms. For example, if the answer is $5\%,$ write $0\mathrm{.}05"$

QUESTION $8$

"The expected return on a firm's equity is $15\%,$ and the firm has a yield to maturity on its debt of $9\%.$ Debt accounts for $6\%,$ common equity for $89\%$ and preferred equity for $5\%$ of the firm's total market value. If its tax rate is $32\%,$ and the cost of preferred equity is $20\%,$ what is this firm $5$ WACe? Express your answers in strictly numerical terms. For example, if the answer is $5\%,$ write $0\mathrm{.}05$