11.Churchgate issues only equity and debt and its tax rate is 40 percent. It has a debt equity ratio of .75, its cost of equity is 11.6 percent and cost of debt before taxes is 6.7 percent. What is the weight on Churchgate's equity? Multiple Choice

.5714

.4286

.6167

.5436

.6432

12.

What is the clean price of the bond of Hajji Ali if it has a face value of $1,000, an invoice price of $1,250 pays a coupon interest of 5 percent, and there are 5 months to the next semiannual coupon date.

Multiple Choice

• $1,241.77

• $1,256.83

• $1,245.83

• $1,188.33

• $1,209.17

13.What is the amount of each payment if Plascote Industries borrows $26,200, at an annual interest of 6.03 percent compounded monthly for 7 years and the first monthly payment is due today?

Multiple Choice

• $250.21

• $381.21

• $316.34

• $251.47

• $383.12

14.

Flora Fountain has 24,000 shares of equity priced at $63 per share and the cost of equity is 13.80 percent. Flora Fountain also has 6,500 shares of preferred stock with a face value of $100, paying a coupon interest of 6.20 percent and selling in the market for $87.00 per share. The debt's YTM is 7.60 percent, its total nominal value is $356,000 and is priced in the market for 103 percent of its par value. If the tax rate is 40 percent, find WACC.

Multiple Choice

• 11.33%

• 10.08%

• 10.30%

• 10.49%

• 10.87%