Question 5 (2 points) Listen XYZ currently has common stock trading at $40 per share. XYZ just paid a dividend of $2.00 per share, which is expected to grow at a constant rate of 5%. XYZ's beta is 1.5, the risk-free rate is 2%, and the market return is expected to be 8%. The pre-tax yield on XYZ's bonds is 7%. XYZ's finance department believes that new stock would require a premium of 5% over their own bond yield. Flotation cost for issuing new stock is 10% Compute the cost of new common stock using the discounted cash flow method (show your answer in percent, and to 2 decimal places. Example: 9.62%). 4 Question 6 (2 points) Listen XYZ has a capital structure of 40% debt, 60% equity, and no preferred stock. The firm can issue new bonds at a pre-tax cost of 5%, and new stock at a cost of 13%. XYZ's tax rate is 25%. Compute the weighted average cost of capital (show your answer in percent (without percent sign) and to one decimal place, example: 9.6%). Your