6G3

Garden Tools Inc. has bonds, preferred stock, and common stocks outstanding. The number of securities outstanding, the current market price, and the required rate of return for these securities are stated in the table below. The firms tax rate is 35%.

Calculate the firm's WACC adjusted for taxes using the market information in the table.

Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)

	The Number of Securities Outstanding	Selling price	The Required Rate of Return
Bonds	1,500	$1,070	9.69%
Preferred Stocks	5,761	$53.42	19.24%
Common Stocks	1,019	$52.45	13.74%

Your Answer:

6A

FIND THE PAYBACK PERIOD FOR THE FOLLOWING PROJECT

INITIAL OUTLAY $8,630

YEAR 1	$3,370
YEAR 2	$3,390
YEAR 3	$3,510
YEAR 4	$7,270

Calculate answer to 2 decimal places.

6f1

Calculate the cost of new common equity financing of stock Q using Gordon Model

Round the answers to two decimal places in percentage form (Write the percentage sign in the "units" box)

	Last Year Dividend	Growth Rate of Dividends	Selling Price of Stock	Floatation Costs	Cost of Common Equity
Stock Q	$4.23	8%	$47.66	$3.37	?