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Answer all questions please Bosio Inc.'s perpetual preferred stock sells for $85.00 per share, and it pays annual dividend. If the company were to sell

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Bosio Inc.'s perpetual preferred stock sells for $85.00 per share, and it pays annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 4.00% of the price paid by investors. What is the company's cost of preferred use in calculating the WACC? a. 8.75% b. 12.81% c. 11.35% d. 8.44% e. 10.42% Trahan Lumber Company hired you to help estimate its cost of capital. You obtained the following data: D1 = $1.25; P0 = $22.50; g = 5.00% (constant); and F = 6.00%. What is the cost of equity raised by selling new common stock? a. 8.84%. b. 11.78% c. 10.58% d. 11.35% e. 10.91%. McCue Inc.'s bonds currently sell for $1, 175. They pay a $90 annual coupon, have a 25-year maturity, and a $ 1,000 par value, but they can be called in 5 years at $1, 050 What is this bond's Yield-to-Call? a. 5.76% b. 7.44% c. 6.89% d. 7.50% e. 7.31% You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.00% the cost of preferred is 7.50%, and the cost of retained earnings is 12.00%. The firm will not be issuing any new stock. What is its WACC? a. 6.96% b. 7.59% c. 8.93% d. 7.68% e. 6.69%

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