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1) In the table below, what is the cost of equity Stock price $75 MRP 5.05% # of shares 12,000,000 Tax rate 28% Beta 1

1) In the table below, what is the cost of equity

Stock price

$75

MRP

5.05%

# of shares

12,000,000

Tax rate

28%

Beta

1

Shareholders equity

$8,300,000

10y T bond yield

3.103%

Dividend

$1.85

2) Given the information below what is the total market value of debt

# bonds

Price quote

BOND A

10386

84.23

BOND B

11865

108.01

3) A Company has 2052309.2 shares outstanding and the stock sells at $98.24 per share. What is the market value of equity?

4) A company is funded with 59.00% debt, costing 5.775%. The cost of equity is 10.59%. The cost of equity is 10.59% and the tax rate is 29%. What is the cost of capital (WAAC)? Round to 3 decimal places

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