1.The Pierce Co. just issued a dividend of $2.30 per share on its common stock. The company is expected to maintain a constant 7 percent growth rate in its dividends indefinitely.If the stock sells for $43.10 a share, what is the company's cost of equity?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimalplaces, e.g., 32.16.)

2.Suppose Potter Ltd. just issued a dividend of $2.59 per share on its common stock. The company paid dividends of $2.09, $2.16, $2.33, and $2.43 per share in the last four years.If the stock currently sells for $78, what is your best estimate of the company's cost of equity capital using arithmetic and geometric growth rates?(Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimalplaces, e.g., 32.16.)

3.Sixth Fourth Bank has an issue of preferred stock with a $5.80 stated dividend that just sold for $100 per share.What is the bank's 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.)

4.Jiminy's Cricket Farm issued a30-year,7 percent semiannual coupon bond5 years ago. The bond currently sells for 95 percent of its face value. The company's tax rate is 24 percent.

a.What is the company's 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.What is the company's aftertax cost of debt?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

5.You are given the following information for Lightning Power Co. Assume the company's tax rate is 23 percent.

Debt: 23,000 7.2 percent coupon bonds outstanding, $1,000 par value, 19 years to maturity, selling for 106 percent of par; the bonds make semiannual payments.

Common stock: 560,000 shares outstanding, selling for $74 per share; beta is 1.17.

Preferred stock: 25,000 shares of 5 percent preferred stock outstanding, currently selling for $95 per share. The par value is $100 per share.

Market: 7 percent market risk premium and 5.1 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.)