22- XYZ Co. is operating at its target capital structure with market values of $120 million in equity and $145 million in debt outstanding. XYZ plans to finance a new $42 million project using the same relative weights of debt and equity. Ignoring flotation costs, how much new debt must be issued to fund the project?

A) $27.4 million

B) $23.0 million

C) $17.2 million

D) $14.1 million

E) $31.3 million

24- A firm has a WACC of 15%. It is financed with 50% debt and 50% equity. The firm's cost of debt is 10% and its tax rate is 40%. If the firm's dividend growth rate is 8% and its current stock price is $52, what is the value of the next dividend the firm is expected to pay?

A) $4.70

B) $6.84

C) $7.35

D) $8.32

E) None of the above.

25- Which of the following is generally true about a firm's cost of debt?

A) It is equal to the yield to maturity on the firm's outstanding bonds.

B) It is greater than the cost of equity.

C) It is equal to the coupon rate on the firm's outstanding bonds.

D) All of the above.

E) None of the above

31- A stock produced total returns of 9.78%, 13.61%, 1.19%, and 4.90% over the past four years, respectively. Based on this information, calculate the standard deviation? (use 5 decimal points when calculating variance and standard deviation)

21- A seasoned equity offering:

A) Involves venture capitalists.

B) Must be a private offering.

C) Involves the issuance of new shares.

D) Involves the sale of treasury stock.

E) None of the above.

A) 2.10%

B) 3.25%

C) 4.32%

D) 5.45%

E) 8.35%