9. A share of preferred stock pays a quarterly dividend of $1.00. If the price of the stock is $50, what is the nominal (not effective) annual rate of return? 5. a. 8.08 B.58 C. 9.08 d. 9.58 e. 10.05 10. Parr Paper's stock has a beta or 1.40, and its required return is 13.008. clover Dairy's stock has a beta or 0.80. It the risk-free rate is 4.008, what is the required rate or return on Clover's stock? (Hint: First find the market risk premium.) a. 8.558 b. 8.716 C. 8.995 d. 9.145 11. Company A has a capital structure with 30% debt, 408 common equity, and 30% preferred equity. The cost of preferred equity is 10%. The YTM on the company's long-term bands is B And the firm uses the CAPM to determine its cost of common equity The risk-free rate is 5.5$, the market risk premium is 59, the beta 1s 1.35 and the company's tax rates 400. what is company A's WACC? a. 108 b. 11.50 c. 9.345 d. 8.55 e 78 12. To help finance a major 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 If the firm's tax rate IS 401, what 15 the component cost OD debe for use in the MACC calculation? a. 4.35 b. 4.585 C. 4.638 d. 5.08 e 5.33