The muggle investment committee at Gringotts bank is evaluating the stock of several companies to add to their portfolio. The common stock of one of the companies is currently priced at $67.99 a share. The company has just pald $1.32 per share as its annual dividend. The dividends have been increasing by 10% percent annually and are expected to continue doing the same. What is this firm's cost of equity? (Answer as a percentage and round to 2 decimals.) Select one: a. 7.88% b. 13.23% c. 12.14% @ 09.71% 6. 1721 Sage Next page MacBook Air BO 200 ODD Il F 19 A * 7 # 3 $ 4 % 5 & 7 2 6 8 9 0 Q W E R Y U 0 A S S D F F H The board of directors for Avery Brothers Inc. has decided to set a target capital structure that consists of 49 % common stock, 26.5 % preferred stock, and 24.5 % debt. The firm has a current cost of equity of 9.2 %, a cost of preferred stock of 73%, and a pre-tax cost of debt of 5.8 %. If the firm faces a marginal tax rate of 19 %, what is their WACC? Select one: Ca 5.45% Ob.5.94% c.759% d. 12.35% De 11.12% ge Next page MacBook Air 20 sad F 13 74 44 57 11 * ! 1 N W# $ 4 % 5 & 7 9 0 Q W E R T Y o 0 S D F G H L J Which of the following is true concerning the capital structure weights that we use to calculate the weighted average cost of capital? Select one: a. are computed using the book value of the long-term debt and the book value of equity b. depend on the firms tax rate care based on the book values of total debt and total equity d. remain constant over time unless the firm issues new securities e. are based on the market value of the firm's debt and equity securities age Next page MacBook Air 20 See 00014 14 > 58 F 976 A 1 @ 2 # 3 $ 4 % 5 & 7 * 8 6 9 AN Q W E R T Y U O . S DF G H J K L