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A) Stock NextTime currently trades for $47/share and is expected to pay a dividend next year of $3.46. If dividends are expected to grow at

A) Stock NextTime currently trades for $47/share and is expected to pay a dividend next year of $3.46. If dividends are expected to grow at 2.1%, what is the cost of equity?

B) You firm has an equity beta of 1.58. If the risk-free rate is 4.1%. If the market risk premium is 8.6%, what is the cost of equity?

C) Suppose our company has a beta of 0.75. The expected return on the market is 15% and the current risk-free rate is 6%. What is our cost of equity?

D) Your firm has 5 million shares outstanding at a current price of $30/share. The book value of the shares is $29/share. The firm also has $100 million in par value of bonds outstanding. The bond current quote is 90. What is the market value of the firm?

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