1. Explain the Arbitrage Pricing Theory?
2. CoffeeCarts has a cost of equity of 15.7 %?, has an effective cost of debt of 3.7 %?, and is financed 68 %with equity and 32 % with debt. What is this? firm's WACC? ?CoffeeCarts's WACC is ???%. ?(Round to one decimal? place.)1.