on croissants next year for $1.25 each. of a croissant is $0.75. Fixed costs are $150,000, depreciation $200,000 and the tax rate is 25%. If the number of croissants sold increases by 10%, and all other variables remain the same, how much will free cash flow increase? (6 marks) 2. Moore Financing Corporation has preferred stock in its capital structure paying a dividend of $3.75 and selling for $25.00. If the marginal tax rate for Moore is 34%, what is the after-tax cost of preferred financing? (1 mark) 3. The target capital structure for QM Industry is 40% common stock, 10% preferred stock and 50% debt. If the cost of equity is 18%, the cost of preferred stock is 10% and the before cost of debt is 8%, and the firm's tax rate is 35%, what is QM's weighted average cost of capital. (4 marks) 4. Hoak Company's common stock is currently selling for $50. Last year's dividend was $1.83 per share. Investors expect dividends to grow at an annual rate of 9% into the future. What is Hoak's cost of common equity? (1 mark) b. Selling new common stock is expected to decrease the price of the stock by $5.00. What is the cost of new common stock? Dividends will remain the same. (1 mark) a