8 O'Brien Inc. has the follow has the following data wa s premium 6.0 and b What is the firm's cost of it from retained earnings based on the CAM 11.30% b. 11.64 c. 11.99% d. 12.35% 12.72% 9. To help fina To help finance a maior expansion Castro Chemical Company sold a noncallable bond Several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid semiannually, sells at a price of $1,075, and has a par value of $1.000. the firm's tax rate is 40%, what is the component after-tax cost of debt for use in the WACC calculation? a. 4.35% b. 4.58% c. 4.839 d. 5.08% e 5.33% 10. Rivoli Ine hired you as a consultant to help estimate its cost of capital. You have been provided with the following data: DO 50.80; PO - $22.50; and g = 8.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? a10.69% b. 11.25% c.11.84% d. 12.43% c. 13.05% 1. You were hired as a consultant to Quigley Company, whose target capital structure is 35% debt. 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of retained earnings is 11.25%, and the tax rate is 40%. The firm will not be issuing any new stock. What is Quigley's WACC? 8.15% b. 8.48% c. 8.82% d. 9.17% 9.54% 25 CX