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hi!! please help :) 6. Which statement is FALSE? a, Using the bond yield plus risk premium approach, one would add a larger risk premium

hi!! please help :)
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6. Which statement is FALSE? a, Using the bond yield plus risk premium approach, one would add a larger risk premium to Harley Davidson's bond yield than they would to King Sooper's bond yield. b. WACC is the correct discount rate to use for all capital budgeting projects. c. The cost of debt should be calculated after tax; that does not apply to the cost of preferred stock or the cost of common stock d. Oftentimes the BV of debt is used to proxy for the MV of debt. e. The MV of equity is equal to the stock price multiplied by the number of shares outstanding 7. Compute the approximate before-tax cost of debt. Par=$1000, coupon rate= 5%, maturity = 10 years, PV = $800. Tax rate is 20% a. 5% b. 6% c. 7% d. 8% 8. Preferred stock pays a $3 dividend. If the current price is $30, what is the cost of issuing preferred stock? The firm's tax rate is 20% a. 8% b. 10% C 12.5% 9. Compute the cost of common stock. The firm just paid a $4 dividend which will grow at 3% per year forever. The current stock price is $50. a. 89 b. 8.24% c. 10.95% d. 11.24% 10. Kan Industries capital structure consists of debt and common equity. It can issue debt at a YTM of 10%. The cost of issuing common stock is 15%. Kan's tax rate is 20%. If Kan plans to raise money 20% debt and 80% equity, what is its WACC? a. 12.5% b. 13.6% 14% d. 15%

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