Three interns, Amber, Courtney, and Jasmine, who are currently working at CSD have been provided the following information. CSDs optimal market value capital structure is comprised of 70% equity and 30% debt. Their marginal tax rate is 40%. The market price of their stock is $34.00. They just paid a dividend of $3.00 and the dividend is expected to grow at 5% forever. Their bonds have a market price of $960.00 and have 20 years to maturity. They pay semi-annually and have a coupon rate of 6.00%. 33. Using the information concerning CSD provided above, Amber will compute that CSDs cost of equity is _____%.

a. 13.914

b. 14.265

c. 14.533

d. 14.844

e. 15.123

Using the information concerning CSD provided above, Courtney will compute that CSDs beforetax cost of debt is _____%.

a. 6.176

b. 6.235

c. 6.356

d. 6.441

e. 6.517

Using the information concerning CSD provided above, Jasmine will compute that CSDs WACC is _____%.

a. 11.129

b. 11.502

c. 11.899

d. 12.236

e. 12.675