Which security should sell at a greater price? a. a 10-year treasury bond with a 4% coupon rate versus a 10-year t-bond with a 5% coupon. b. a 3-month expiration call option with an exercise price of $40 versus a 3-month call on the same stock with an exercise price of $35. c. a put option on a stock selling at $50, or a put option on another stock selling at $60 (all other relevant features of the stocks and options may be assumed to be identical

Western electric has 32,000 shares of common stock outstanding at a price per share of $79 and a rate of return of 13.00 percent. the firm has 7,300 shares of 7.80 percent preferred stock outstanding at a price of $95.00 per share. the preferred stock has a par value of $100. the outstanding debt has a total face value of $404,000 and currently sells for 111 percent of face. the yield to maturity on the debt is 8.08 percent. what is the firm's weighted average cost of capital if the tax rate is 39 percent?