i. Three years ago JJ Inc. issued 30-year bonds paying 7% semi-annually with a par value of $1,000. These bonds currently sell at 93% of their Face Value. The companys tax rate is 35%. What is the pre-tax cost of debt?

ii. Excel corp common stock has a beta of 1.15. Government T-Bills are yielding 3.5% and the expected return on the market index is 11%. The companys cost of capital would be.

iii. Tata Inc. is planning to increase its dividend by 10% for the next three years and then decrease its growth rate to only 4% per year. Last week the company paid its dividend of $1 per share. If the required rate of return is 13.75% what is the value of one share?