E1 Question 7The weighted average cost of capital for a firm with debt is the:rate of return a company must earn on its existing assets to maintain the current value of its stock.minimum discount rate the firm should require on any new project.coupon rate the firm should expect to pay on its next bond issue.discount rate that the firm should apply to all of the projects it undertakes.rate of return debtholders should expect to earn on their investment in this firm.« Previous{N Question 8A stock has a beta of 1.33, the expected return on the market is 11 percent, and the risk-free rate is5.44 percent. What must the risk premium on this stock be?(Do not round any intermediate calculations. List your answer as a percent, round your final answer to 2decimal places and enter it in the box below.)« PreviousNot savedNext ▸Subm

Answer: B. The minimum discount rate the firm should require on any project The weighted average…

Question 8 A stock has a beta of 1.33, the expected return on the market is 11 percent, and the risk-free rate is 5.44 percent. What must the risk premium on this stock be? (Do not round any intermediate calculations. List your answer as a percent, round your final answer to 2 decimal places and enter it in the box below.)