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ALL PARTS TO ONE QUESTION PLEASE ANSWER ALL. THANK YOU Ruston Timber Company hired your consulting firm to help them estimate the cost of equity.

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Ruston Timber Company hired your consulting firm to help them estimate the cost of equity. The yield on the firm's bonds is 12%, and your firm's economists believe that the cost of equity can be estimated using a risk premium of 3.85% over a firm's own cost of debt. What is an estimate of the firm's cost of equity? a. 15.85% b. 8.15% c. 13.31% d. 12.52% Titans Company has a corporate bond outstanding that mature in 16 years. The annual coupon rate is 7%. The bond pays coupon semiannually and has a par value of $1,000. Currently, the bond is selling for $1,015. What is the company's pretax cost of debt? a. 9.97% b. 1.14% c6.84% d. 2.31% You are given the following information concerning Around Town Tours Co, which is a publicly traded company. The tax rate is 34%. Common stock: Beta is 1.04 Market: Risk-free rate is 4.1%. Market risk premium is 10.5%. What is the firm's cost of equity? a. 7.12% b. 11.28% c. 15.02% d. 8.16% You are given the following information concerning Around Town Tours Co, which is a publicly traded company. The tax rate is 34%. Preferred stock: 9,000 shares outstanding, currently selling for $88 per share, dividend is $8 per share. What is the firm's cost of preferred stock rp? a. 9.09% b. 5.99% C10.3096 d. 9.78%

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