5. You have $100,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 25.0 percent. Suppose Stock X has an expected retum of 18.2 percent and a beta of 1.4, and Stock Y has an expected return of 13.6 percent and a beta of 0.80. a. How much money will you invest in Stock Y? b. What is the beta of your portfolio? 6. Ewha Corp has an issue of preferred stock with a S4 stated dividend that just sold for S80 per share. What is Ewha Corp's cost of preferred stock? 7. Ewha Corp is trying to determine its cost of debt. The firm has a debt issue outstanding with 12 years to maturity that is quoted at 110 percent of face value. The issue makes semiannual payments and has an embedded cost of 10 percent annually. a. What is the company's pretax cost of debt? b. If the tax rate is 35 percent, what is the aftertax cost of debt? 8. Ewha Corp has a target capital structure of 65 percent common stock, 10 percent preferred stock, and 25 percent debt. Its cost of equity is 14 percent, the cost of preferred stock is 6 percent, and the cost of debt is 8 percent. The relevant tax rate is 30 percent, a. What is Ewha Corp's WACC? b. What is Ewha Corp's after-tax cost of debt? 9. Ewha Corp has 10 million shares of common stock outstanding. The current share price is $66, and the book value per share is $6. Ewha Corp also has two bond issues outstanding. The first bond issue has a face value of $70 million, has a 6 percent coupon, and sells for 93 percent of par. The second issue has a face value of $55 million, has an 8 percent coupon, and sells for 104 percent of par. The first issuc matures in 21 years, the second in 6 years. What is Ewha Corp's capital structure weight of the equity on a book value basis? b. What is Ewha Corp's capital structure weight of the equity on a market value basis? C. Which are more relevant, the book or market value weights? a