9.2 JR Oil Rigs' currently outstanding 13% coupon bonds have a yield to maturity of 9.5%. JR believes it could issue at par new bonds that would provide a similar yield to maturity. If its marginal tax rate is 30%, what is JR's after-tax cost of debt? 9.4 Burnwood Tech plans to issue some $25 par preferred stock with a 6% dividend. The stock is selling on the market for $27.00, and Burnwood must pay flotation costs of 4% of the market price. What is the cost of the preferred stock? 9.5 Summerdahl esorts' common stock is currently trading at $36 a share. The stock is expected to pay a dividend of $3.00 a share at the end of the year, and the dividend is expected to grow at a constant rate of 5% a year. What is the cost of common equity? 9.6 Booher Book Stores has a beta of 0.8. The yield on a 3-month T-bill is 4% and the yield on a 10-year government bond is 6%. The market risk premium is 5.5%, but the stock market return in the previous years was 15%. What is the estimated cost of common equity using the CAPM? 9.7 Shi Importers' balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity. Shi faces a 30% tax rate and the following data: , , and . If Shi has a target capital structure of 30% debt, 5% preferred stock, and 65% common stock, what is Shi's WACC