#9	The companys most recent dividend was $2.35 per share, and dividends
	are expected to grow at an annual rate of 4.1 percent indefinitely.
	If the stock sells for $43 per share,
	What is the cost of capital based on the DDM model?
	a	Ke=	8.65%
	b	Ke=	9.79%
	c	Ke=	7.79%
	d	Ke=	10.89%
	DDM Approach:
	Do
	growth rate
	Future Dividend (D1)
	Po
	Dividend Yield
	Cost of Equity under DDM
#10	The Beta Company has Equity with a market value of $56 million.
	The Beta Company has Debt with a market value of $64 million.
	The Cost of equity is 15%.
	The Cost of Debt is 8%.
	The Corporate tax rate is 25%.
	What is the Weighted Average Cost of Capital for the Beta Company?
	a	WACC =	9.20%
	b	WACC =	11.20%
	c	WACC =	10.20%
	d	WACC =	8.20%
	market value of Equity
	Market Value of Debt
	Capital Structure
	Weight of Equity
	Weight of Debt
	Cost of Equity
	Cost of Debt
	Corporate Tax Rate
	After-tax Cost of Debt
	WACC