1

Easy companys stock is selling for 13$. The next expected dividend is.7$ per share and expected to grow at 5% for the future. If the flotation cost for issiing new equity is 8%. what is the cost of equity that you would use for rs?

a- 10.85%

b- 10.39%

c-11.02%

d-11.56%

2

bags stock currently trades for 52.5. It is expected to pay dividend of 2.5 at the end of the year and the dividend is expected to grow at a constant rate of 5.5% per year. The before tax cost of debt is 7.5% and the tax rate is 40%. If the target captail strucutre is 45% debt and 55% equity. what is the comoanys WACC?

a- 7.36%

b-7.07%

c-7.67%

d7.98%