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_____________________________________________________ _____________________________________________________ Please complete all questions. Calculate the cost of new common equity financing of stock Q using Gordon Model Round the answers to two

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_____________________________________________________

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_____________________________________________________

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Please complete all questions.

Calculate the cost of new common equity financing of stock Q using Gordon Model Round the answers to two decimal places in percentage form (Write the percentage sign in the "units" box) Find the profitability index (PI) for the following series of future cash flows, assuming the company's cost of capital is 10.60 percent. The initial outlay is $399,681. Year 1: $179,300 Year 2: $149,690 Year 3: $140,120 Year 4: $192,860 Year 5: $155,673 Round the answer to two decimal places. Given the following information on Big Brothers, Inc. capital structure, compute the company's weighted average cost of capital (WACC). The company's marginal tax rate is 40%. Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)

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