1/ If expected dividends grow at 7% and the appropriate discount rate is 9%, what is the value of a stock with an expected dividend of $2.45? (Round your answer to 2 decimal places.)

$123.50

$183.75

$61.25

$122.50

2/ The coupon rate on a debt issue is 6%. If the yield to maturity on the debt is 9%, what is the after-tax cost of debt in the weighted average cost of capital if the firm's tax rate is 37%? (Round your answer to 2 decimal places.)

4.32%

7.02%

5.67%

7.82%

3/ The coupon rate on an issue of debt is 11%. The yield to maturity on this issue is 10%. The corporate tax rate is 30%. What would be the approximate after-tax cost of debt for a new issue of bonds? (Round your answer to 2 decimal places.)

9.15%

5.65%

8.45%

7.00%

4/ A firm's preferred stock pays an annual dividend of $10, and the stock sells for $77. Flotation costs for new issuances of preferred stock are 6% of the stock value. What is the after-tax cost of preferred stock if the firm's tax rate is 34%? (Round your answer to 2 decimal places.)

12.47

15.97

15.27

13.82