15.

Oak Harbor Inc. has bonds outstanding that mature in eight years paying 4 percent coupon annually. These bonds have a face value of $1,000 and a current market price of $1,050. What is the companys pre-tax cost of debt?

Group of answer choices

6.56%

5.22%

3.28%

5.84%

16.

Camano Island Corp. just paid an annual dividend of $1.15 a share. The market price of the stock is $20 and the dividend growth rate is 5 percent. What is the firms cost of equity?

Group of answer choices

5.00%

10.25%

11.04%

5.75%

18.

Anacortes Boutique has 550,000 shares of common stock outstanding at a market price of $15 a share. The company also has 15,000 bonds outstanding that are quoted at 97 percent of face value. Assume a face of $1,000 for these bonds. What weight should be given to the bond when the firm computes its weighted average cost of capital?

Group of answer choices

60.93%

36.18%

48.00%

63.82%

51.55%