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a. If investors require an 11% return, what is the expected growth rate? Do not round intermediate calculations. Round your answer to two decimal places.

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image text in transcribed a. If investors require an 11% return, what is the expected growth rate? Do not round intermediate calculations. Round your answer to two decimal places. 8% b. If Sidman reinvests retained earnings in projects whose average return is equal to the stock's expected rate of return, what will be next year's EPS? (Hint: g=(1 - Payout ratio)ROE). Do not round intermediate calculations. Round your answer to the nearest cent. $pershare The current interest rate on new debt is 8%; Foust's marginal tax rate is 25%; and its target capital structure is 60% debt and 40% equity. a. Calculate Foust's after-tax cost of debt. Round your answer to two decimal places. % Calculate Foust's cost of common equity. Calculate the cost of equity as rs=D1/P0+g. Do not round intermediate calculations. Round your answer to two decimal places. % b. Find Foust's WACC. Do not round intermediate calculations. Round your answer to two decimal places. % Adamson Corporation is considering four average-risk projects with the following costs and rates of return: structure consists of 75% common stock, 15% debt, and 10% preferred stock a. What is the cost of each of the capital components? Do not round intermediate calculations. Round your answers to two decimal places. Cost of debt: Cost of preferred stock: Cost of retained earnings b. What is Adamson's WACC? Do not round intermediate calculations. Round your answer to two decimal places. %

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