Please help me answer the following questions!

26) Gamblers Casino is undergoing a major expansion. 30) The ABC Company is planning a $64 million The expansion will be financed by issuing new 15- expansion. The expansion is to be financed by selling year, $1,000 par, 9%% annual coupon bonds. The $25.6 million in new debt and $38.4 million in new market price of the bonds is $1,070 each. Gamblers common stock. The before-tax required rate of retum flotation expense on the new bonds will be $50 per on debt is 9 percent and the required rate of return bond, Gamblers marginal tax rate is 35%. What is the on equity is 14 percent. If the company is in the 35 after-tax cost of debt for the newly-issued bonds? percent tax bracket, what is the firm's cost of capital? Aj 8.92% AJ 5.31% B) 9.89% B) 5.69% C) 10.74%% C) 8.17% D) 11.50% D) 8.76% E) 12.00% E) 9.00% Answer: Answer 31) Clothier, Inc. has a target capital structure of 40% 27) Which of the following is tax deductable? debt and 60% common equity, and has a 40% A) Interest payments on debt marginal tax rate. If Clothier's yield to maturity when B) Principle payment on debt C) Dividend payments to preferred stockholders the bonds were issued is 7.5%% and investors require a D) Both A & B are correct 15% return on Clothier's common stock, what is the E) All of the above are tax deductable firm's weighted average cost of capital? AJ 7.2% Answer B) 8.7% 28) Kelly Corporation will issue new common stock to C) 10.8% D) 12.25%% finance an expansion. The existing common stock just E) 12.00% paid a $1.50 dividend, and dividends are expected to grow at a constant rate 8%% indefinitely. The stock Answer: sells for $45, and flotation expenses of 5% of the selling price will be incurred on new shares. What is 32) Kendall, Inc. has $15 million of outstanding bonds the cost of new common stock be for Kelly Corp.? with a coupon rate of 10 percent. The yield to A) 3.79% maturity on these bonds at issuance is 12.5 percent. B) 11.33% If the firm's tax rate is 30 percent, what is relevant C) 11.51% cost of debt financing to Kendall, Inc.? D) 11.60% AJ 3.75% E) 11.79% B) 7.00% () 8.00% Answer D) 8.75%% E) 13.75% 29) Royal Mediterranean Cruise Line's common stock is selling for $22 per share. The last dividend was $1.20, Answer: and dividends are expected to grow at a 6%% annual rate. Flotation costs on new stock sales are 5%% of the selling price. What is the cost of Royal's new common stock? A) 5.73% 6.09% C) 11.45% DJ 11.78% E) 12.09%%