QUESTION $5$

"Continue considering Firm XYZ$.$ Assume that the equity beta for Firm XYZ is $0\mathrm{.}915.$ The Yield on $10-$year treasuries is $2\%,$ and that the market risk premium for the year is $8\%.$ What would be the cost of equity for Firm XYZ$?$ Express your answers in strictly numerical terms. For example, if the answer is $5\%,$ write $0\mathrm{.}05"$

QUESTION $6$

"Continue considering Firm XYZ$.$ If the dividends for Firm XYZ are the same for common and preferred stock, and the price for common stock is $$10.$ What would be the cost of equity? Express your answers in strictly numerical terms. For example, if the answer is $5\%,$ write $0\mathrm{.}05$