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4/4 CosaNostra Pizza is undergoing a major expansion. The expansion will be financed by ssuing new 24-year, $1,000 par, 6% semiannual coupon bonds. The market

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4/4 CosaNostra Pizza is undergoing a major expansion. The expansion will be financed by ssuing new 24-year, $1,000 par, 6% semiannual coupon bonds. The market price of the bonds is $875 each. Flotation expense on the new bonds will be $90 per bond. The marginal tax rate is 35%. What is the post-tax cost of debt for the newly-issued bonds? Fedland Inc. will issue new common stock to finance an expansion. The existing common stock just paid a $2.25 dividend, and dividends are expected to grow at a constant rate of 5% indefinitely. The stock sells for $85, and flotation expenses of5% of the selling price will be incurred on new shares. What is the cost of new common stock? 3. YT Inc. will issue new common stock to finance an expansion. The existing common stock just paid a $2.50 dividend, and dividends are expected to grow at a constant rate of 7.5% indefinitely. The stock sells for $55, and flotation expenses of 8% of the selling price will be incurred on new shares. What is the cost of internal equity? 4. Hiro Corp. common stock is selling for $36 per share. The last dividend was S4.60, and dividends are expected to grow at a 9% annual rate. Flotation costs on new stock sales are 5% of thc scling price. what is thc cost of Hiro Inc.'s new common stock? 5, Enzo, Inc. has a target capital structure of 40% debt and 60% common equity, and has a 40% marginal tax rate. If the firm's before-tax cost of debt is 10% and cost ofcommon stock is 18%, what is the firm's WACC? 6. Raven Co. expects to pay a dividend of $7.10 per share in one year. The current price of Raven common stock is $63.40 per share. Flotation costs are $5.00 per share when Raven issues new stock. What is the cost of internal common equity if the long-term growth in dividends is projected to be 4.75 percent indefinitely

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