d. $1,374 Answer 10. An analyst gathers the following information about a company and the markets: 18 10% 2.5 Net Income Expected rate of return on the market index Financial leverage (total assets/equity) Beta for the company's stock Total shareholder's equity Risk-free rate of return 1.5 150 5.0% The analyst expects the information above to accurately reflect the future. If the company wants to achieve a growth rate of 15% without changing its capital structure or issuing new equity, the company's maximum dividend payout ratio (in %) is closest to 25 b. 40 c60 Answer 11. Which of the following is an agency cost? a. Cost of interest payments to bondholders Cost of salaries for managers c. Cost of dividend payments to bondholders d. Cost of an internal audit required by bondholders