Q8) The cost of capital for a firm which uses 45% debt at an after-tax cost of 10% and 55% common stock at a 15% cost is: A) 12.25%. B) 12.50%. C) 12.75%. D) 13.00%. E) 13.25%. a Q9) The expected dividend is $2.50 for a share of stock priced at $25. What is the cost of common equity if the long-term growth in dividends is projected to be 8%? A) 10% B) 8% C) 25% D) 18% Q10) Sonderson Corporation is undertaking a capital budgeting analysis. The firm's beta is 1.5. The rate on six-month T-bills is 5%, and the return on the S&P 500 index is 12%. What is the appropriate cost of common equity in determining the firm's cost of capital? A) 13.1% B) 15.5% C) 17.7% D) 19.9%