1. IL Industries has Cash of $250 million, Debt of $650 million, Equity of $800 million, and Other Assets of $1,200 million. It's cost of debt is 7%, cost of equity is 14% and tax rate is 21%. IL Industries' cost of capital is closest to

2. Ausie has an equity cost of capital of 13%, a debt cost of capital of 7%, and it has a 35% corporate tax rate. If Ausie maintains a .5 debt to equity ratio, then Ausie's after-tax WACC is closest to:

3. BU Mining has no debt, and maintains a policy of holding $50 million in excess cash reserves, invested in risk-free treasury securities currently yielding 4%. If BU Mining has a 21% corporate tax rate, the cost of permanently maintaining this $50 million reserve is closest to:

4. AU Industries is in the process of selling shares of stock in an auction IPO. At the end of the bidding period, Luther's investment bank has received the following bids: 

(1) $10 - 250,000 shares;

 (2) $15 - 450,000 shares; 

(3) $20 - 500,000 shares;

 (4) $25 - 300,000 shares. 

What will be offer price of these shares if AU is selling 1 million shares?