I want these to be solved within an hour please

MCQ

14-The Lemon Corporation has a capital structure of 30% debt, 15% preferred stock, and 55% common equity. The company after-tax cost of debt is 7%, its cost of preferred stock is 11%, its cost of retained earnings is 15%, and its cost of new common stock is 16%. The company stock has a beta of 1.5 and the company tax rate is 35%. What is the company WACC?

Select one: a. 11.20% b. 13.80% c. 12.00% d. 14.45%

15-Which of the following features, or benefits, belongs to COMMON stockholders? Select one:

a. voting rights

b. ownership of the firm

c. all the options are correct d. limited liability

16-PREFERRED stock is similar to a BOND in that:

Select one:

a. Preferred stock is not like bonds in any way.

b. Dividend payments to preferred shareholders, much like bond interest payments to bondholders, are tax deductible.

c. Preferred stockholders receive a dividend payment, much like interest payments to bondholders, which is usually fixed.

d. Investors can sue the firm, if preferred dividend payments are not paid, much like bondholders can sue for non-payment of interest payments.

17-COMMON stock valuation usually treats common shares as a: Select one:

a. growing perpetuity

b. perpetuity

c. annuity

d. lump sum

18-Which of the following statements is INCORRECT? Select one:

a. If the expected growth rate for dividends is zero, then the value of common stock will be equal to the current dividend.

b. Common stock does not mature.

c. The growing perpetuity stock valuation model requires the stock to grow at a rate smaller than the required return, otherwise, the stock is worthless.

d. Bondholders can be viewed as creditors, whereas stockholders are the true owners of the firm.

19-The Rabbit Corporation bonds are currently priced at $1,088. They have a face value of $1,000 and 12 years to maturity. They pay an annual coupon rate of 6%. The YIELD-TO-MATURITY on this bond is:

Select one: a. 6.7%

b. 8.1%

c. 7.4%

d. 5.0%

20-The Fig Corporation is planning a $64 million expansion. The expansion is to be financed by selling $25.6 million in new debt and $38.4 million in new common stock. The before-tax required rate of return on debt is 9% and the required rate of return on equity is 14%. If the company is in the 35% tax bracket, what is the corporate cost of capital?

Select one: a. 11.50% b. 10.74% c. 9.89%

d. 8.92%