Share Times New R BIU 12 - AA A2 E X, X A.2.A TI AaBbce ABCDEO Section C: 2 marks each You are required to show all the steps for these questions 1) The Francis Company is expected to pay a dividend of Di = $1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 1.15, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is the company's current stock price? W2 account Page 5 7 815 words English (United States) Safari 2) Dentaltech Inc. projects the following data for the coming year. If the firm follows the residual dividend policy and also maintains its target capital structure, what will its payout ratio be? EBIT Interest rate Debt outstanding Shares outstanding $2,000,000 10% $5,000,000 $5,000,000 Capital budget % Debt % Equity Tax rate $850,000 40% 60% 40% 190% Page 5 of 7 815 words English (United States) MacBook Air 3) Assume the following facts about a firm's financing in the next year, and calculate the component cost of debt. Weighted average cost of capital = 11.3% Proportion of debt financing = 45% Proportion of internal equity financing = 55% Cost of internal equity = 14.0% Page 6 of 815 words Engin unted States) XIA ABCDE 4)You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.00%, the cost of preferred is 7.50%, and the cost of common using retained earnings is 12.75%. The firm will not be issuing any new stock. What is its WACC? English d es PRO 77 315 words