1. You were hired as a consultant to a company, whose target capital structure is 40% debt, 10% preferred, and 50% common equity. The after-tax cost of debt is 6.00%, the cost of preferred stock is 7.50%, and the cost of retained earnings is 13.25%. The firm will not be issuing any new stock. What is its WACC?
2. The requirement for independent of members in the practice of public accounting is explained in the AICPA code of professional conduct rule number?