Assume that the equity beta for JJ is 0.55. The Yield on 10-year tresuries is 3%, and that the market risk premium for the year is 6%.

What is the cost of equity for JJ?"

		6.30%
		6.50%
		6.10%
		5.90%

Currently the dividends for JJ firm are the same for common and preferred stock, but the growth rate for common stock dividends are expected to grow at a 3% rate. Its current common stock price is $27.

What is the cost of equity for JJ firm?"

		10%
		11%
		12%
		13%

Using the results of Questions 4 and 5. If you are to be conservative in your approach,

What is the cost of Equity that you will use in estimating the WACC?"

		6.30%
		6.50%
		11.00%
		12.00%