$24.$ Yesterday, a stock you owned paid a dividend of $$1\mathrm{.}30.$ You know that its cost of equity is $13\%.$ You expect the stock's dividend to grow by $12\%$ next year when it is paid again. What is the stock's price?

a$.$ $$145\mathrm{.}60$

b$.$ $$100\mathrm{.}00$

c$.$ $$130\mathrm{.}00$

d$.$ $$13\mathrm{.}00$

$25.$ A firm has a capital structure with $$75$ million in equity and $$75$ million of debt. The cost of equity capital is $10\%$ and the pretax cost of debt is $7\%.$ If the marginal tax rate of the firm is $35\%,$ compute the weighted average cost of capital of the firm.

a$.7\mathrm{.}3\%$

b$.7\mathrm{.}6\%$

c$.8\mathrm{.}0\%$

d$.8\mathrm{.}4\%$

$26.$ Which of the following would you NOT consider when making a capital budgeting decision?

a$.$ the additional taxes a firm would have to pay in the next year

b$.$ the cost of a marketing study completed last year

c$.$ the opportunity to lease out a warehouse instead of using it to house a new production line

d$.$ the change in direct labor expense due to the purchase of a new machine