Question 1 1 pts The Say Hey! Co. just issued a dividend of $2.45 per share on its common stock. The company is expected to maintain a constant 6 percent growth rate in its dividends indefinitely. The company's tax rate is 40%. If the stock sells for $45 a share, what is the company's cost of equity? Choose the range that includes the correct solution. O Less than 10% Greater than or equal to 10%, but less than 11% Greater than or equal to 11%, but less than 12% Greater than or equal to 12%, but less than 13% O Greater than or equal to 13% Question 2 1 pts The Tubby Ball Corporation's common stock has a beta of 1.3. If the risk-free rate is 4.5 percent and the expected return on the market is 12 percent, what is Tubby Ball's cost of equity? Choose the range that includes the correct solution. Less than 14% Greater than or equal to 14%, but less than 15% Greater than or equal to 15%, but less than 16% Greater than or equal to 16%, but less than 17% Greater than or equal to 17% Question 3 1 pts Holdup Bank has an issue of preferred stock with a $6 stated dividend that just sold for $92 per share. Holdup has a 34% tax rate. What is the bank's cost of preferred stock? Choose the range that includes the correct solution. Less than 3% Greater than or equal to 3%, but less than 4% Greater than or equal to 4%, but less than 5% Greater than or equal to 5%, but less than 6% Greater than or equal to 6% Question 4 1 pts Jiminy's Cricket Farm issued a 30-year, 10 percent coupon bonds 7 years ago. The face value is $1,000. The bond currently sells for $1,080 and makes semiannual coupon payments. The company's tax rate is 35%. What is the pretax cost of debt? Choose the range that includes the correct solution. Less than 7% Greater than or equal to 7%, but less than 8% Greater than or equal to 8%, but less than 9% Greater than or equal to 9%, but less than 10% Greater than or equal to 10% Question 5 1 pts True or False. In practice when calculating the cost of equity using the CAPM, everyone in the world will agree on the appropriate risk-free rate, market rate of return, and corporate beta measurement. O True O False