1)Savers has an issue of preferred stock with a $4.65 stated dividend that just sold for $83 per share. What is the banks cost of preferred stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of preferred stock?

2) Dani Corporation has 5 million shares of common stock outstanding. The current share price is $77, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $110 million, a coupon rate of 6 percent, and sells for 94 percent of par. The second issue has a face value of $95 million, a coupon rate of 5 percent, and sells for 106 percent of par. The first issue matures in 20 years, the second in 9 years. Suppose the most recent dividend was $4.65 and the dividend growth rate is 5.2 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. The tax rate is 23 percent. What is the companys WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

WACC?

3)Ursala, Incorporated, has a target debt-equity ratio of .75. Its WACC is 8.9 percent, and the tax rate is 24 percent. a. If the companys cost of equity is 11 percent, what is its pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If instead you know that the aftertax cost of debt is 5.9 percent, what is the cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of debt?

Cost of equity?

4) You are given the following information for Lighting Power Company. Assume the companys tax rate is 22 percent. Debt: 7,000 5.6 percent coupon bonds outstanding, $1,000 par value, 22 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. Common stock: 400,000 shares outstanding, selling for $58 per share; the beta is 1.09. Preferred stock: 17,000 shares of 3.4 percent preferred stock outstanding, a $100 par value, currently selling for $79 per share. Market: 6 percent market risk premium and 4.4 percent risk-free rate. What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

WACC?