Question $4$

Bonds: Mortgage bonds can be issued at a pre$-$tax cost of $12$ percent. Debentures can be issued at a pre$-$tax cost of $10\mathrm{.}9$ percent.

expected to grow at $7\%$ in the future.

What is the cost of capital using mortgage bonds and internal equity?

Question $5$

AND ROUND TO $2$ DECIMAL PLACES AT THE END. DO NOT ENTER THE $\%$ SIGN. IF YOUR ANSWER IS $7\mathrm{.}7000\%,$ FOR EXAMPLE, ENTER $7\mathrm{.}70.$