5. Your company has preferred stock that has an annual dividend of $5. If the current price is $30, what is the cost of preferred stock? 6. Suppose you have a market value of equity equal $600 million and a market value of debt equal to $800 million. What are the capital structure weights? 7. A call option has an exercise price of $60. i. What is the value of the call option at expiration if the stock price is $45? ii. What is the value of the call option at expiration if the stock price is $65? 8. Suppose you have $5,000. Based on the rates of 1USD = 120 Yen, how many Japanese Yen can you buy? 9. Suppose an investment will cost $10,000 initially and will generate the following cash flows: Year 1: Year 2: Year 3: $7,000 $5,000 $4,000 The required return is 20%. Should we accept or reject the project? 10. Suppose you have a 10% bond that pays annual coupon and with mature in 10 years. The face value is $1,000, and the yield to maturity on similar bond is 8%. The bond is also convertible with a conversion price of 100. The stock is currently selling for $120. What is the minimum price of the bond