ABC, Inc. has the following market values of capital: ABC has a tax rate of 35%. What is ABC's weighted average cost of capital? Siam Dance Studios has an annual cash dividend policy that raises the dividend each year by Last week's dividend was $2 per share (current). What is the intrinsic price of the stock if the dividend growth is constant and the stock's required rate of return is 10%? A common stock priced at $78.56 has paid an annual dividend of $2.50 which is expected to at 3% annually. What is its component cost of capital if it faces a flotation cost of 2%? A project with an initial outlay of $3,000 results in after tax cash flows of $500 after each of the next years. What is the project's payback period? If the firm has a 5-year payback requirement should it accept the project? Explain. Bagel Pantry Inc. is considering an investment project with expected cash flows below: The company's cost of capital is 26%. Compute the net present value (NPV) and internal