Atlas Industries common shares sell for 72,50 per share. Atlas expects to set its next annual dividend at 3,41 per share. If Atlas expects its annual dividends to grow by 8 percent per year indefinitely, the current risk-free rate is 4%, the expected return on the market is 10 percent, and the stock has a beta of 1.25, In Promethea the applicable tax rate is 25%. Atlas has 25 million , 7.5% annual coupon bonds outstanding. For this issue the corporation got an A+ credit rating score from S&P. Atlas has 930.000 shares outstanding.

a) What is Atlas cost of equity using CAPM?

b) What is Atlas cost of equity using the constant-growth model?

c) Given the answers for a) & b), what is our best estimate for the cost of equity?

d) What is Atlas WACC considering the cost of equity and its cost of debt?

e) How many bonds were sold by Atlas when it raised the funds?