$4.$ Phil's Carvings, Inc. wants to have a weighted average cost of capital of $9\%.$ The firm has an after$-$tax cost of debt of $5\%$ and a cost of equity of $11\%.$ What debt$-$equity ratio is needed for the firm to achieve its targeted weighted average cost of capital? $.$a$.0\mathrm{.}33.$ b$.0\mathrm{.}40.$ c$.0\mathrm{.}50.$ d$.0\mathrm{.}60.$

$5.$ Unilate plans to issue preferred stock that pays a $$12\mathrm{.}80$ dividend per share and sells for $$120$ per share in the market. It will cost $3\%($flotation costs$)$ to issue the new preferred stock. The current selling price of the stock is $$120.$ Find the cost of preferred stock?

a$.10\%.$ b$.11\%.$ c$.12\%.$ d$.$ $$13\%.$

$6.$ Assume the risk$-$free rate is $6\%,$ the return for the market portfolio is $11\%$ and beta is $1\mathrm{.}8$ for Stock A$.$ Find A$$s cost of retained earning?

a$.15\%.$ b$.11\%.$ c$.20\%.$ d$.25\mathrm{.}8\%.$

$7.$ Jack's Construction Co$.$ has $80,000$ bonds outstanding that are selling at par value. Bonds with similar characteristics are yielding $8\mathrm{.}5\%.$ The company also has $4$ million shares of common stock outstanding. The stock has a beta of $1\mathrm{.}1$ and sells for $$40$ a share. The U$.$S$.$ Treasury bill is yielding $4\%$ and the market risk premium is $8\%.$ Jack's tax rate is $35\%.$ What is Jack's weighted average cost of capital?

a$.7\mathrm{.}10\%.$ b$.7\mathrm{.}39\%.$ c$.10\mathrm{.}38\%.$ d$.10\mathrm{.}65\%.$