The Holmes Company's currently outstanding bonds have a 9% coupon and a 13% yield to maturity. Holmes believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is Holmes' after-tax cost of debt? Round your answer to two decimal places. Torch Industries can issue perpetual preferred stock at a price of $50.50 a share. The stock would pay a constant annual dividend of $6.50 a share. What is the company's cost of preferred stock, tp? Round your answer to two decimal places. Pearson Motors has a target capital structure of 40% debt and 60% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 10%, and its tax rate is 40%. Pearson's CFO estimates that the company's WACC is 10.50%. What is Pearson's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. The Holmes Company's currently outstanding bonds have a 9% coupon and a 12% yield to maturity. Holmes believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is Holmes' after-tax cost of debt? Round your answer to two decimal places. Torch Industries can issue perpetual preferred stock at a price of $72.50 a share. The stock would pay a constant annual dividend of $5.00 a share. What is the company's cost of preferred stock, tp? Round your answer to two decimal places. Pearson Motors has a target capital structure of 35% debt and 65% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 12%, and its tax rate is 40%. Pearson's CFO estimates that the company's WACC is 12.20%. What is Pearson's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. The Exanes Company's next expected dividend, Di, is $3.15; its growth rate is 5%; and its common stock now sells for $34.00. New stock (external equity) can be sold to net $30.60 per share, al. What is Exames's cost of retained earnings, w? Do not round intermediate calculations. Round your answer to two decimal places. %% b. What is Evanes's percentage flotation cost, F7 Round your answer to two decimal places. % c. What is Exanes's cost of new common stock, to? Do not round intermediate calculations, Round your answer to two decimal places fe Styles Paragraph Stivate before Monday, December 7, 2020 Activate Palencia Paints Corporation has a target capital structure of 40% debt and 60% common equity, with no preferred stock. Its before-tax cost of debt is 11%, and its marginal tax rate is 40%. The current stock price is Pa = $35.00. The last dividend was D. - $2.50, and it is expected to grow at a 5% constant rate. What is its cost of common equity and its WACC? Do not round intermediate calculations. Round your answers to two decimal places. % b. WACC - % The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 16%, its before-tax cost of debt is 12%, and its marginal tax rate is 40%. Assume that the firm's long-term debt sells at par value. The firm's total debt, which is the sum of the company's short-term debt and long- term debt, equals $1,133. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. Assets Liabilities And Equity Cash $ 120 Accounts payable and accruals $ 10 Accounts receivable 240 Short-term debt 63 Inventories 360 Long-term debt 1,070 Plant and equipment, net 2,160 Common equity 1.737 Total assets $2,880 Total liabilities and equity $2,880 Calculate Paulson's WACC using market value weights. Do not round intermediate calculations. Round your answer to two decimal places, Banyan Co.'s common stock currently sells for $48.25 per share. The growth rate is a constant 6%, and the company has an expected dividend yield of 6%. The expected long-run dividend payout ratio is 35%, and the expected return on equity (ROE) is 8%. New stock can be sold to the public at the current price, but a flotation cost of 15% would be incurred. What would be the cost of new equity? Do not round intermediate calculations. Round your answer to two decimal places. Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $93.50, but flotation costs will be 10% of the market price, so the net price will be 1 $84.15 per share. What is the cost of the preferred stock, including flotation? Round your answer to two decimal places. Kahn Inc. has a target capital structure of 40% common equity and 60% debt to fund its $8 billion in operating assets. Furthermore, Kahn Inc. has a WACC of 13%, a before tax cost of debt of 12%, and a tax rate of 40%. The company's retained earnings are adequate to provide the common equity portion of its capital budget. Its expected dividend next year (D) is $4, and the current stock price is $30. a. What is the company's expected growth rate? Do not round intermediate calculations. Round your answer to two decimal places. b. If the firm's net income is expected to be $1.7 billion, what portion of its net income is the firm expected to pay out as dividends? (Hint: Refer to Equation below.) Growth rate - (1 - Payout ratio)ROE Do not round intermediate calculations. Round your answer to two decimal places. %