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1) Sarp Industries want to fund their new expansion project through shares and bonds

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1) Sarp Industries want to fund their new expansion project through shares and bonds. The weights of each are 70% and 30% respectively. the company's beta is 0.9, the risk-free rate is 5% and the market risk premium is 7%. The yield to maturity on the bonds is 6% and the tax rate is 15%. The WACC is equal to: Select one: a. 10.33% b. 9.44% C. 8.33% d. 10%

2) Bugs Corp. has funded its mega project through shares worth $3,000,000. The total funding required was $5,000,000. The rest of funding was achieved through bonds. What is the weight of bonds in the total funding of the project? Select one: a. 40% O b. 50% C. 60% d. 25%