Q1:

Time Warner shares have a market capitalization of $70 billion. The company is expected to pay a dividend of $0.40 per share and each share trades for $20. The growth rate in dividends is expected to be 9?% per year. ? Also, Time Warner has $10 billion of debt that trades with a yield to maturity of 8?%. If the? firm's tax rate is 30?%, compute the? WACC???

Q2:

A firm has? $3 million market value and it sells preferred stock with a par value of? $100. If the coupon rate on the preferred stock is 8?% and the preferred stock trades at $86?, what is the cost of preferred stock? financing?

Q3:

A stock market comprises 1400 shares of stock A and 1400 shares of stock B. The share prices for stocks A and B are $20 and $5?, respectively. What proportion of the market portfolio is comprised of each? stock?

OA. ??. ??. OD. 10.33% 9.29% 9.81% 8.78%