1. ACME recently paid its annual stock dividend of $.32 per share. The dividends are expected to grow at 25% annually for the next 4 years and then decrease to an annual growth rate of 3% forever. What is the current market price of one share of ACME's stock, assuming a 15% required return? A. $7.31 B. $9.02 C. $6.02 D. $5.42 E.$7.52

2. ACME Co. has a capital structure of 46% common equity, 5% preferred stock, and the rest in debt financing. Its cost of equity capital is 15.8%, the cost of preferred stock is 8.3%, and the after-tax cost of debt is 6.8%. What is ACME's WACC given a corporate tax rate of 23%?

		A. 9.82%
		B. 11.32%
		C. 12.12%
		D. 11.02%
		E. 0.42%

3. Suppose that ACME Co's capital structure consists of 40% equity, 60% debt, and that its before-tax cost of debt is 9%, while its required return on equity capital is 15%. If the current corporate tax rate is 34%, what will be ACME's WACC?

		A.9.37%
		B. 9.56%
		C. 11.47%
		D. 24.06%