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Can you please help me answer number 1 and 3! Name: 1) McGill Inc. has just issued 10-year bonds 3) Mullin has preferred stock with

Can you please help me answer number 1 and 3!

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Name: 1) McGill Inc. has just issued 10-year bonds 3) Mullin has preferred stock with a current that have a face value of $1,000 with a 12% coupon rate paid annually. The bonds sold market price of $40 per share. The preferred for $960, but McGill Inc. had to pay $10 stock pays an annual dividend of 5% based flotation costs as well. McGill Inc. has a on its par value of $100. Flotation costs 30% tax rate. What is the after tax cost of associated with the sale of preferred stock debt? equal $1.50 per share. The company's A) 12.9184% marginal tax rate is 35%. Therefore, the cost B) 11.1025% C) 9.0429% of issuing new preferred stock is: D) 7.7717% A) 4.2857% E) 3.8755% B) 8.7500% Answer: C) 12.5000% 2) Jiffy Co. expects to pay a dividend of $1.00 D) 12.9870% per share in one year. The current price of E) 16.2500% Jiffy common stock is $45 per share. Answer: Flotation costs are $2.50 per share when 4) The Red Ston Inc. is planning a $100 Jiffy issues new stock. Jiffy Co.'s long- million expansion. The expansion will be term growth in dividends is projected to be financed by selling $45 million in new debt 5.5 percent per annum indefinitely? and $55 million in new common stock. The a. What is the cost of internal common before-tax cost of debt is 5 percent and the equity (retained earnings)? cost on equity is 12 percent. If the company A) 2.2222% is in the 35 percent tax bracket, what is the B) 2.3529% firm's weighted average cost of capital of C) 7.7222%% the expansion? D) 7.8444 A) 5.7525% E) 7.8529% B) 6.2600% F) 7.9824%% C) 6.5400% Answer: D) 7.3875% b. What is the cost of external common E) 8.0625% equity? Answer: A) 23529% 5) St. John's wants to borrow money to build a B) 7.7222% new business school. They need $25 C) 7.8444% million. They can borrow in the US at 4.5% D) 7.8529%% or in the UK for 7.5% for 1 year. Assume E) 7.9824% the current exchange rate is $1.4:61.0, what Answer: is the I-year future exchange rate? A) $0.6944/El B) $0.7348/EI C) $1.3609/EI D) $1.4000/1 1 E) $1.4402/El

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