There are $10,000$ shares of stock outstanding that are selling for $1\mathrm{.}75$ times book value

The company paid a dividend of $$2\mathrm{.}00$ per share last year and dividends are expected to grow at $4\%$ per

year.

The current risk free rate of return is $3\%$ and the Market Risk Premium is $7\%$ and the firms beta is $1\mathrm{.}05$

Series A Bonds have $20$ years to maturity and pay interest se mi$-$annually at a coupon rate of $6\%.$

Series A Bonds are currently selling for $$1,150$ per bond.

Series B Bonds have $12$ years to maturity and pay interest se mi$-$annually at a coupon rate of $4\%$

Series B Bonds are currently selling for $$950$ per bond.

The tax rate for the firm is $25\%.$

$1.$ Regarding the CTTE financial information, using the DGM$,$ what is the firm's cost of equity?

Group of answer choices

$9\mathrm{.}83\%$

$9\mathrm{.}60\%$

$14\mathrm{.}0\%$

None of the aRegarding the CTTE Financial information, what is the weight of the Series A bonds in the capital structure?

Group of answer choices

$66\mathrm{.}6\%$

None of the answers presented are correct

$19\mathrm{.}0\%$

$28\mathrm{.}2\%$

$3.$ Regarding the financial information for CTTE, using an average of the two methods to calculate the cost of equity, the WACC is closest to$?$

Group of answer choices

$7\mathrm{.}89\%$

$8\mathrm{.}58\%$

None of the answers presented are correct

$8\mathrm{.}39\%$

$4.$ Which of the following statements regarding the weighted average cost of capital is accurate?

Group of answer choices

It should be used as the required return when analyzing any new project.

It remains constant when the debt$-$equity ratio changes.

It is unaffected by changes in corporate tax rates.

It equals the aftertax cost of the outstanding liabilities.

It is the return investors require on the total assets of the firm.

$5.$ When calculating a firm$$s weighted average cost of capital, the capital structure weights:

Group of answer choices

are based on the market values of the outstanding securities$.$

depend upon the financing obtained to fund each specific project.

are based on the book values of debt and equity.

are restricted to debt and common stock.

remain constant over time unless new securities are issued or outstanding securities are redeemed.