Roy city received a gift, the principal of which is to be invested in perpetuity with the income to be used to support the local library. in which fund should this gift be recorded?

a. permanent fund
b. investment trusts fund
c. private-purpose trusts fund
d. special revenue fund

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?