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AcQuinty, Inc. has a beta of 1.34 and a marginal tax rate of 31%. The company has one bond issue outstanding with a total face

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AcQuinty, Inc. has a beta of 1.34 and a marginal tax rate of 31%. The company has one bond issue outstanding with a total face value of $750.000. The onds are currently quoted at 98.6. These bonds have seven years to maturity, a 6% coupon rate, and pay interest semi-annually. What is the after-tax ost of debt for McQuinty, Inc? Muliple Cholce 4149 5.16% 6.25% 5.558 4318 Buy it Cheap has an overall beta of 88 and a cost of equity of 11.2% for the firm overall. The firm is 100% financed with common stock. Division A within the firm has an estimated beta of 1.34 and is the riskiest of all of the firm's operations. What is an appropriate cost of capital for division A if the market risk premium is 5%? Muluple Choice 15.3% 171% 147% 13.5% 15.9% Dexter United has a debt-equity ratio of 70 and a tax rate of 34%. The firm does not issue preferred stock. The cost of equity is 15% and the pre-tax cost of debt is 8.5\%. What is Dexter's weighted average cost of capital? Multiple choice 11.134 10.74 1232% 12.60% 10.57% Peter's Audio Shop has a cost of debt of 7%, a cost of equity of 11%, and a cost of preferred stock of 8%. The firm has 104,000 shares of common stock outstanding at a market price of $20 a share. There are 40,000 shares of preferred stock outstanding at a market price of $34 a share. The bond issue has a total face value of $500,000 and sells at 102% of face value. The company's tax rate is 34%. What is the weighted average cost of capital for Peter's Audio Shop? Multiple Choice 6.14% 914x 6.54% 8.60% 9.45% A firm finances its projects with 45% common stock, 15% preferred stock, and 40% debt. The fitm has a 34% marginal tax rate. The cost of equity is 9%, the cost of preferred is 8%, and the cost of debt is 7%. What is the WACC? Muliple Choice 710x 7.24% B.056 7,808 6.98%

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