Concerning the prevention of defects, which of the following statements is true? Multiple Choice Zero defects is a cost-effective strategy. When the product falls to the right of the cost minimization point on the total quality cost curve, then incurring failure costs is wise. It is always wiser to spend money on correcting failures than on preventing defects. When the product falls to the right of the cost minimization point on the total quality cost curve, then incurring prevention costs is wise.

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?