Granite works maintains a debt-equity ratio of .65 and has a tax rate of 32 percent. the pretax cost of debt is 9.8 percent. there are 25,000 shares of stock outstanding with a beta of 1.2 and a market price of $19 a share. the current market risk premium is 8.5 percent and the current risk-free rate is 3.6 percent. this year, the firm paid an annual dividend of $1.10 a share and expects to increase that amount by 2 percent each year. using an average expected cost of equity, what is the weighted average cost of capital?

Afirm wants to strengthen its financial position. which of the following actions would increase its current ratio? a. reduce the company's days' sales outstanding to the industry average and use the resulting cash savings to purchase plant and equipment.b. use cash to repurchase some of the company's own stock.c. borrow using short-term debt and use the proceeds to repay debt that has a maturity of more than one year.d. issue new stock, then use some of the proceeds to purchase additional inventory and hold the remainder as cash.e. use cash to increase inventory holdings.