Part A

Part B

Question 18 4 pts Manny Ramirez Motors has a target capital structure of 70% equity and 30% debt. The yield to maturity on its outstanding bonds is 8% (APR) and the company tax rate is 25%. Ramirez's CFO has calculated the company's WACC as 9.2% (APR) What is the company's cost of equity capital (APR)? O 9.71% O 6.00% O none of the other answer options are correct O 10.57% Messina Manufacturing will issue common stock to the public for $40 per share. The expected dividend and the growth in dividends are $2.00 per share and 5%, respectively. If the flotation cost is 15% of the issue's gross proceeds, what is the cost of external equity? 10.88% O 10.24% 10.00% 10.56%