1-.The target capital structure for QM Industries is 35 percent common stock, 9 percent preferred stock, and 56 percent debt. If the cost of common equity for the firm is 17.3percent, the cost of preferred stock is 9.2 percent, the before-tax cost of debt is 8.2 percent, and the firm's tax rate is 35

percent, what is QM's weighted average cost of capital?

QM's weighted average cost of capital is

_______%.

2-.Falon Corporation is issuing new common stock at a market price of $28.47. Dividends last year were $1.39 and are expected to grow at an annual rate of 7.9 percent forever. What is Falon's cost of common equity capital?

The company's cost of common equity is

_______%.

3-. Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 8.7 percent annual interest and matures in 15 years. Investors are willing to pay $949 for the bond and Temple faces a tax rate of 33 percent. What is Temple's after-tax cost of debt on the bond? The after-tax cost of debt is

________%.