Question 1 1 pts JJ Crew is considering an expansion by issuing $150 million 20-year bonds. The bond has a coupon rate of 11% and is expected to yield net proceeds of $960 per $1000 face value to the firm. If JJ's tax rate is 35%, what is JJ's after-tax cost of debt? O 11.52% 10.49% 7.49% O 5.52% Question 2 1 pts BNW just paid its common equity owners a dividend of $1.12. BNW's management indicated in their recent conference call that they intend to increase the dividend by 4% each year. The common stock is currently traded at $15. What is cost of common equity for BNW according to the dividend growth model? 13.76% 11.76% O 9.76% O 7.76% Question 3 1 pts The risk-free rate is 1% and the market expected return is 8%. What is cost of internal equity for a firm with beta of 1.2? 9.4% 8.4% O 7.4% 6.4% Question 4 1 pts East Realm is financed with 35% debt, 50% equity, and 15% preferred stocks. East Realm current dividend is $5, and it is expected to grow at a rate of 4% each year. The stock price for East Realm is $60. East Realm has $350 million in retained earnings that can be used as a source of internal equity financing. Any equity capital more than $350 million needs to be sourced with issuance of external equity at net proceeds of $57. East Realm can borrow up to $300 million from a local bank at the before-tax rate of 6%. To raise more debt, East Realm has to issue a 10-year bond with a coupon rate of 8% at net proceeds of $940 per $1,000 face value. East Realm's preferred stock pays constant dividend of $4 and is priced at $35. East Realm preferred stock has a $1 issuance cost. Lastly, East Realm's tax rate is 35%. What is East Realm's WACC at $900 million financing? 13.35% 12.35% 11.35% 10.35%