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

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%