c) St German's pre-tax cost of debt? And after-tax cost of debt? d) St German's weighted average cost of capital? Question 2 (12 marks) You are following five different stocks and need to give your evaluation to your customers if they are underpriced, overpriced or correctly priced. The market expected return is 8%, with a standard deviation of 5%. The risk-free rate is 4%. Provide the calculations for you to support your evaluation. (Tip: You do not need to use all the data provided.) Security Standard deviation Beta Your evaluation (underpriced, overpriced or correctly priced) Expected return 8% 10% 9% ABC RTS DKF 1.3 0.9 3% 10% 7% 1 9% 4% 1.2 OPL WEQ 14% 6% 1.3 Question 3 (8 marks) Using the tax shield approach, calculate OCF given the following information: Sales $152,000; Costs $95.000: Depreciation $10,000. Tax rate is 34%. Question 2 (12 marks) You are following five different stocks and need to give your evaluation to your customers if they are underpriced, overpriced or correctly priced. The market expected return is 8%, with a standard deviation of 5%. The risk-free rate is 4%. Provide the calculations for you to support your evaluation. (Tip: You do not need to use all the data provided.) Security Expected return Standard deviation Beta Your evaluation (underpriced, overpriced or correctly priced) ABC 8% 9% 1.3 RTS 10% 3% 0.9 DKF 7% 10% 1 OPL 9% 4% 1.2 WEQ 14% 6% 1.3