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Use the information provided about Intel to answer this question. What is Intel's after tax cost of debt? 3.47% O A. 4.97% OB. 5.23% .

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Use the information provided about Intel to answer this question. What is Intel's after tax cost of debt? 3.47% O A. 4.97% OB. 5.23% . 6.25% OD. INTEL The following is information for Intel. Intel wants to pursue a new type of artificial intelligence (AI) chip that would be used in autonomous vehicles. They want to know what they should use for their WACC (weighted average cost of capital). Preferred stock sells for $165 and pays an annual dividend of $13.25. There are currently 20 year 7.1% coupon bonds that pay semi-annual payments and are non- callable available at a price of $1,016.79. The bond-yield risk premium is 2%. The current risk free rate is 1% and the market risk premium is 8.3%. Intel's common stock has a BETA of.59. It sells for a price of $59.70 per share and pays an annual dividend of $1.26. The dividend growth rate is expected to be 3% a year. Intel has a target capital structure of 20% debt, 20% preferred stock and the rest is common equity. Intel's tax rate is 10%. Use the information provided about Intel to answer this question. What is Intel's cost of preferred stock? 12.68% . 10.37% OB. 8.03% , 6.14% OD Support Use the information provided about Intel to answer this question. What is Intel's cost of common equity using the CAPM method? 5.90% OA 6.17% . 7.23% OC. 9.1496 OD Support Use the information provided about Intel to answer this question. What is Intel's cost of common equity using the DCF method? 5.17% . 5.99% OB. 2.0% OC. 2.4% OD port Use the information provided about Intel to answer this question. What is Intel's cost of common equity using the BYRP method? 8.94% . 9.97% . 8.25% OC. 5.47% Use the information provided about Intel to answer this question. What is Intel's cost of weighted average cost of capital? 6.11% . 6.29% . 6.86% OC. 10.12% OD If Intel has a WACC of 7% and they have a project that will provide them a profit of 12%, then Intel should pursue the project O True False Support

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