JaiLai Cos. stock has a beta of 0.6, the current risk-free rate is 6.4 percent, and the expected return on the market is 12 percent.

What is JaiLais cost of equity? (Round your answer to 2 decimal places.)

Cost of equity

%

Suppose that LilyMac Photography expects EBIT to be approximately $43,000 per year for the foreseeable future, and that it has 500 10-year, 5 percent annual coupon bonds outstanding. (Use Table 11.1)

What would the appropriate tax rate be for use in the calculation of the debt component of LilyMacs WACC?

Tax rate

%

Suppose that JB Cos. has a capital structure of 75 percent equity, 25 percent debt, and that its before-tax cost of debt is 14 percent while its cost of equity is 18 percent. Assume the appropriate weighted-average tax rate is 25 percent.

What will be JBs WACC? (Round your answer to 2 decimal places.)

WACC

%

WhackAmOle has 3 million shares of common stock outstanding, 2.0 million shares of preferred stock outstanding, and 75,000 bonds. Assume the common shares are selling for $65 per share, the preferred shares are selling for $59.00 per share, and the bonds are selling for 105 percent of par.

What would be the weights used in the calculation of WhackAmOles WACC? (Do not round intermediate calculations and round your answers to 2 decimal places.)

Equity weight	%
Preferred stock weight	%
Debt weight	%