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Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $96.00, but flotation costs will be 9% of the market price, so the net price will be $87.36 per share. What is the cost of the preferred stock, including flotation? Round your answer to two decimal places %% Banyan Co.'s common stock currently sells for $48.50 per share. The growth rate is a constant 5%, and the company has an expected dividend yield of 4%. The expected long-run dividend payout ratio is 20%, and the expected return on equity (ROE) is 7%. New stock can be sold to the public at the current price, but a flotation cost of 10% would be incurred. What would be the cost of new equity? Do not round intermediate calculations. Round your answer to two decimal places. % Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at ra = 10%, and its common stock currently pays a $3.7 dividend per share (Do = $3.75). The stock's price is currently $22.50, its dividend is expected to grow at a constant rate of 9% per year, its tax rate is 35%, and its WACC is 13.15%. What percentage of the company's capital structure consists of debt? Do not round intermediate calculations. Round your answer to two decimal places. 96 Olsen Outfitters Inc. believes that its optimal capital structure consists of 65% common equity and 35% debt, and its tax rate is 40%. Olsen must raise additional capital to fund its upcoming expansion. The firm will have $5 million of retained earnings with a cost of ts = 13%. New common stock in an amount up to $8 million would have a cost of re = 14.5%. Furthermore, Olsen can raise up to $4 million of debt at an interest rate of ra = 11% and an additional $6 million of debt at ro = 15%. The CFO estimates that a proposed expansion would require an investment of $8.2 million. What is the WACC for the last dollar raised to complete the expansion? Round your answer to two decimal places. 8 %