The risk free rate is 5.44% and the market risk premium is 3.06%. A firm recently paid a $3.22 prefered stock dividend per share while its price is $100 per share. The firm's 6.65% coupon bond issue trades at $976 and matures in 10 years. The firm's beta is 1.20. The firm's tax rate is 23%. The firm's capital structure for its common stock, preferred stock and debt (bond) is 50%, 25% and 25% respectively. What is the Weighted Average Cost of Capital? Multiple Choice 7.11% 9.97% 6.03% 6.71% Dont use an AI please

A firm's stock has a beta of 1.75, Treasury bills yield 3.8%, and the market portfolio offers an expected return of 9.5%. In addition to equity, the firm finances 26% of its assets with debt that has a yield to maturity of 7.4%. The firm is in the 28% marginal tax bracket. What is the company’s after tax cost of debt?

The expected return on the market is 12.36 %, the risk-free rate is 4.88 %, and the tax rate is 18.00 %. Semper Fun Sports has 310,000 common shares outstanding that are priced at $40.20 per share and have an expected return of 16.96 % and an expected real return of 14.62 %. Last year, Semper Fun Sports common stock had a return of 11.66 %. The company also has 411,000 shares of preferred stock outstanding that are priced at $15.50 per share and have an expected return of 13.36 % and an expected real return of 11.81%. Last year, Semper Fun Sports preferred stock had a return of 13.36%. Finally, the company has 10,000 bonds outstanding with a coupon rate of 9.69 %, yield-to-maturity of 4.70%, current yield of 8.44%, face value of $1,000.00, and price of $1,260.00. What is the weighted average cost of capital for Semper Fun Sports? 9.73% (plus or minus 0.02 percent) O 11.32% (plus or minus 0.02 percent) 12.21% (plus or minus 0.02 percent) 10.98% (plus or minus 0.02 percent) None of the…

Vestal Corp. has a beta of 1.3, the market risk premium is 7% and the risk-free rate of interest is 4%. Vestal's preferred stock pays a dividend of $4 each year and trades at a price of $40 per share. Vestal's debt trades with a yield to maturity of 8.5%. The market value of equity, preferred stock and debt for Vestal Corp. are $80 billion, $40 billion and $120 billion, respectively. What is Vestal's weighted average cost of capital if its tax rate is 30%?

XYZ currently has common stock trading at $40 per share.  XYZ just paid a dividend of $2.00 per share, which is expected to grow at a constant rate of 5%.  XYZ's beta is 1.5, the risk-free rate is 2%, and the market return is expected to be 8%.  The pre-tax yield on XYZ's bonds is 7%.  XYZ's finance department believes that new stock would require a premium of 5% over their own bond yield.  Flotation cost for issuing new stock is 10%. Compute the cost of retained earnings using the bond yield plus risk premium approach (show your answer in percent, and to 2 decimal places. Example: 9.62%).   Question 4 options:

Handy Handbags (HH) recently paid a dividend of $2.00 (D0), which is expected to grow at 7%.  HH’s stock price is $23, its beta is 1.6, the yield on its bonds is 12%, and the risk premium on the company’s own stock is 5%.  The risk-free rate is 6% and the market risk premium is 4%.  Flotation costs will be 10% if Handy issues new common stock. Using the discounted cash flow method, compute the cost of retained earnings for HH:   Question 13 options:   13.3%   18.4%   16.3%   15.7%

What is the value of this levered firm? EBIT is $750,000 with an unleveredcost of equity of 10%, tax rate of 21%, and the firm just issued a $1,000,000 bond with a coupon of 6%.

Spartan Machinery stock trades at $60 per share with a beta of 1.5, an estimated market return of 12%, and a risk free rate of 5%. There are 20 million shares outstanding. The company has bonds with a face value $1 billion outstanding and a market value of $980 million. The coupon rate is 9% (semiannual coupons) and there are 10 years to maturity. The company has a tax rate of 38%. What is the WACC?