Question 2 a. CF Power Co has provided the following information on the capital structure of the firm. Debt: 3,000 8 percent irredeemable bonds outstanding, GHS1,000 par value, selling for 103 percent of par; Common stock: 90,000 shares outstanding, selling for GHS45 per share; the beta is 1.20. Preferred stock: 13,000 shares of 7 percent preferred stock outstanding, currently selling for GHS108 per share. The company's tax rate is 35 percent, risk-free rate is 6 percent and the market risk premium is 8 percent. Required: Compute the Weighted Average cost of capital [8 points) b. Mintech Corporation is expanding rapidly, and it currently needs to retain all of its earnings; hence it does not pay any dividends. However, investors expect Mintech to begin paying dividends, with the first dividend of GHS1.00 coming 3 years from today. The dividend should grow rapidlyat a rate of 50 percent per year during Years 4 and 5. After Year 5, the company should grow at a constant rate of 8 percent per year. The required return on the stock is 15 percent Required: Compute the value of the stock today (7 points) Question 3 Patrina Motors' bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 8 percent. The bonds have a yield to maturity of 9 percent. Required a. What is the current market price of these bonds? [4 points) b. Compute the current yield (2 points] c. Compute the duration of the bond [6 points] d. Compute the modified duration and interpret your results [3 points)