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4) Asume that you are considering the purchase of a 10-year, no calable with an annual coupon rate of St. The band has a face

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4) Asume that you are considering the purchase of a 10-year, no calable with an annual coupon rate of St. The band has a face value of $1.00 makes semiannual interest payments. If you require an 95% nominal yield maturity on this investment, what is the maximum price you should be willine for the land? a. 1.140.00 b. $1,10.00 e. $1,000.00 d. Su,20.00 e. $980.00 5) Dyl Inc.'s bonds currently sell for Sozo and have a par value of $1,000. They pay a $65 annual coupon and have a wear maturity, but they can be called in 5 years at $1,100. What is their vield to maturity (YTM)? a. 6.83N b. 7.92% c. 5.26% d. 5.87% e. 6.96% 6) Reddick Enterprises' stock currently sells for $50.00 per share. The dividend is projected to increase at a constant rate of 5.50% per year. The required rate of return on the stock, T., is 9.00% What is the stock's expected price 3 years from today? a. $71.04 b. $71.63 c. $58.71 d. $68.69 e. $61.65 7) You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.00%, the cost of preferred is 7.50%, and the cost of retained earnings is 11.50%. The firm will not be issuing any new stock. What is its WACC? a. 8.70% b. 8.87% c. 7.92% d. 7.66%

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