Q11

Q12

Question 11 1 pts Several years ago the Haverford Company sold a $1,000 par value bond that now has 33 years to maturity and an 10% annual coupon that is paid quarterly. The bond currently sells for $1087.99, and the company's tax rate is 20%. What is the component cost of debt for use in the WACC calculation? O 7.02% O 7.32% O 6.42% O 6.72% O 7.62% Question 12 1 pts Your company's stock sells for $35 per share, the last dividend (DO) was $1.1, its growth rate is a constant 2 percent, and the company will incur a flotation cost of 11 percent if it sells new common stock. What is the firm's cost of new equity, re? 05.20% 0 5.60% O 6.00% O 4.80% 0 6.40%