Student Name (Please Print) 29) JPR Company's preferred stock is currently selling to preferred stock is currently or $200, and pays annual dividend of $2.00 per share. Underwriters of a new perpetua would charge 3 per share in notation costs. The firm's tax rate re. Underwriters of a new issue of preferred stock compute the cost of new preferred stock for IPR A 4 BOS 7.14% C 8.00% D915 30) You were hired as a consultant to ung 35% debt, 10% preferred, and 55% com were hired as a consultant to Outer Company whose target capital structure is eot. 10% preferred, and 55% common equity. The interest rate on new debt is 0.50, the yield on the preferred is 6.00, the cost of retained earnings is 14.75%, and the tax rate is 40%. The firm will not be issuing any new stock. What is Quigley's WACC? Round final answer to two decimal places. Do not round your intermediate calculations A 12.19% B. 8.36% C 9.17% D. 10.08% 31) The lower the firm's tax rate, the lower will be its after-tax cost of debt and also its WACC, other things held constant. A True B. False 32) A company's perpetual preferred stock currently sells for $102.50 per share, and it pays an $8.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. What is the firm's cost of preferred stock? A. 8.22% B. 9.28% C 6.90% D. 9.53% 33) The expected return on Natter Corporation's stock is 14%. The stock's dividend is expected to grow at a constant rate of 8%, and it currently sells for $50 a share. Which of the following statements is CORRECT? A. The stock's dividend yield is 7%. B. The stock's dividend yield is 8%. C. The current dividend per share is $4.00. D. The stock price is expected to be $54 a share one year from now. Page 7 of 9