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Please answer both questions, thanks. Frisco Corp has a beta of 1.20. The...

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Finance

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Please answer both questions, thanks.

Frisco Corp has a beta of 1.20. The risk-free rate is 5% and the expected return on the market is 12%. What is the firm's cost of common stock based on the CAPM if the firm's tax rate is 30%? O 13.40% 9.38% O 17.00% O 19.40% O 13.58% Dallas Inc. is considering issuing long-term debt. The debt would have a 30-year maturity, a 10% coupon rate with an annual payment and a face value of $1,000. If the firm can sell this debt for $950 today, and its tax rate is 35%, what is the component cost of debt for use in the WACC calculation? O 6.50% O 7.23% O 10.00% O 10.56% O 6.86%

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