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Bender and Co. is issuing a $1,000 par value bond that pays 9% interest annually Investors are expected to pay S918 for the 10-year bond.

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Bender and Co. is issuing a $1,000 par value bond that pays 9% interest annually Investors are expected to pay S918 for the 10-year bond. Bender will have to pay S33 per bond in flotation costs. What is the cost of debt if the firm is in the 34% tax bracket? I. 2. Adams Inc. has the following data: RE= 5.00%; RPM = 6.00%; and b = 1.05, what is the firm's cost of common from reinvested earnings based on the CAPM? 3. Verigreen Lawn Care products just paid a dividend of $1.85. This dividend is expected to grow at a constant rate of 3% per year, so the next expected dividend is $1.90. The stock price is currently $12.50. New stock can be sold at this price subject to flotation costs of 15%. The company's marginal tax rate is 40%. Compute the cost of external equity (new common stock) Bartlett Company's 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 common using reinvested earnings is 12.75%. The firm will not be issuing any new stock. You were hired as a consultant to help determine their cost of capital. What is its WACC 4

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