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a $ 931 b. $1.056 C $ 775 d. $1.254 e S1,150 7) Assume that Assume that you are a consultant to troske Ine.and you

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a $ 931 b. $1.056 C $ 775 d. $1.254 e S1,150 7) Assume that Assume that you are a consultant to troske Ine.and you have been provided with the following data: Di-50.67: PO-542 50 and 006 (const) What is the cost of equity from retained earnings? 11.30% 69.58% c) 9.96% d) 11.68% e) 7.95% H2.50 -.08 TS-08 (42.503.07 42.50 42:50 rs-.080.01s llo TS-9. 500. 8) Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital You have been provided with the following data: Tre - 4.10%; RP-5.25%, and b= 1.15. Based on the CAPM approach, what is the cost of equity from retained carnings? a) 7.60% b) 8.62% c) 12.67% d) 12.27% e) 10.14% 9) To help finance a major expansion, Castro Chemical Company sold a non-callable 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 $875, and has a par value of $1,000. If the firm's tax rate is 40%, what is the component cost of debt for use in the WACC calculation? a) 5.95% b) 5.63% c) 6.47% d) 6.15% e) 5.31%

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