9. Early in the new year, Focus Shipping Inc. will need to raise $30 million by issuing a combination of stock & bonds. Their target Debt to Equity ratio is 3:1. Focus is in a 20% tax bracket and shareholders required rate of retum includes a dividend yield of 2.5% and an expected constant growth rate of 8%. New bonds will be issued at par and their yield to maturity is 9%. What is the company's WACC (weighted average cost of capital)? A. 7.50% B. 8.03% C. 9.68% D. 10.13% 10. The shares of Tission Records of Jamaica is selling at $43.75 share in early January 2020. They will pay a dividend in late 2020 of $1.87. The dividend is expected to grow at a constant rate after 2020. If investor's require a 10% return, what is Tission's expected (g) rate of growth? A. 4.27% B. 5.73% C. 10.00% D. Do not have enough information to determine. Q11 and Q12: You take out a $165,000 loan at a bank with the following terms, Repayment will come in the form of twenty yearly payments (of the same amount) with the first being made a year from today. The interest rate is 8%. 11. At the start of the second year, what is the amount of principal still owing? A. $161,800.00 B. S151,800.00 C. $161,394.39 D. $165,000.00 12. Find the price of a 6 year (to maturity) bond that makes semi-annual coupon payments of $40 each, has a face value of $1,000 and has a yield to maturity of 6.8%. A. $ 775.21 B. S. 865.71 C. $1,000.00 D. $1,058.32 13. You wish to accumulate $1 million 15 years from now. You will make 15 bank deposits in your bank with today marking the first payment. Your bank pays 4.5% interest compounded annually. You anticipate inflation to be 2.5% and will increase your annual deposit to the bank each year by that same 2.5% each year. How much must your first deposit be to meet your goal? A. $31,790 B. $33,221 C. $39,301 D. $40,071