DEF Company's current share price is $18.9 and it is expected to pay a $1.3 dividend per share next year. After that, the firm's dividends are expected to grow at a rate of 3.4% per year.

What is an estimate of DEF Company's cost of equity? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not include a percent sign in your answer.

Enter your response below.

Correct response: 10.280.01

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DEF Company also has preferred stock outstanding that pays a $2.45 per share fixed dividend. If this stock is currently priced at $32.7 per share, what is DEF Company's cost of preferred stock? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not include a percent sign in your answer.

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Correct response: 7.490.0

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DEF Company has existing debt issued three years ago with a coupon rate of 6%. The firm just issued new debt at par with a coupon rate of 5.6%. What is DEF Company's pre-tax cost of debt? Enter your answer as a percentage. Do not include a percent sign in your answer.

Enter your response below. Correct response: 5.60.01

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DEF Company has 6 million common shares outstanding and 2 million preferred shares outstanding, and its equity has a total book value of $70 million. Its debt has a market value of $40 million. If DEF Company's common and preferred shares are priced at $18.9 and $32.7, respectively, what is the market value of DEF Company's assets? Enter your answer in millions of dollarss.

V= Correct response: 218.80.01 million

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DEF Company faces a 30% tax rate. Using the correct answers from the previous parts, what is the company's WACC? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not include the percentage sign in your answer.

WACC= __________ (Answer here)

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