tab shift esc caps lock control Canvas O Arbitrage transaction Spot trade O Forward trade Question 17 City Rentals has 44,000 shares of common stock outstanding at a market price of $32 a share. The common stock just paid a $1.50 annual dividend and has a dividend growth rate of 2.5 percent. There are 7,500 shares of $9 preferred stock outstanding at a market price of $72 a share. The outstanding bonds mature in 11 years, have a total face value of $825,000, a face value per bond of $1,000, a market price of $989 each, and a pretax yield to maturity of 8.3 percent. The tax rate is 21 percent. What is the firm's weighted average cost of capital? O 7.76% O 8.10% 10.30% 9.97% O 9.29% Question 18 7.88% Smathers Corporation stock has a beta of .88. The market risk premium is 7.10 percent and the risk-free rate is 2.91 percent annually. What is the company's cost of equity? Q A Z L option @ 2 W S #3 X command : E D $ 4 # C R LL F % 5 V T MacBook Pro 6 G Y B & 7 H C N * 00 2.85 pts # 8 2.85 pts M 9 K O O L P