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Question 1 1 pts Bean's Coffee is trying to determine their weighted average cost of capital (WACC). They've gathered the following information about their
Question 1 1 pts Bean's Coffee is trying to determine their weighted average cost of capital (WACC). They've gathered the following information about their capital structure: Market Capital Source Book Value Value (in Required Return (in millions) millions) Common 205 52 13% Stock Preferred 18 6 9% Stock Debt 56 53 4% Bean's Coffee also has a corporate tax rate of 30%. What is the WACC for Bean's Coffee? D Question 2 1 pts Duke Energy's capital structure is comprised of 66% debt and no preferred stock; the rest of their capital is in the form of common stock. The cost of debt for Duke Energy is 4%, and the cost of equity is 9%. Duke Energy currently pays a corporate tax rate of 21%. What is Duke Energy's WACC? Question 3 1 pts Nifty Bikes is a publicly trading company that is trying to determine their cost of equity using the dividend discount model. Nifty Bikes just paid a dividend of $1.91 per share. Historically. dividends have grown by about 3.5% per year. Nifty Bikes shares are currently trading for $28.24 a share. What is Nifty Bikes' cost of equity? D Question 4 1 pts You've recently started a job working for Netflix. One of your first tasks is to find the cost of equity using the CAPM. Based on recent market data, you estimate that Netflix's beta is 1.34. The expected return on the market is 8%, and the current risk-free rate is 3%. What is Netflix's cost of equity (according to CAPM)?
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