Weir Inc. has a bond in its capital structure that has 20 years to maturity left.The bond has a 9.20% coupon paid annually, sells at a price of $1,000 and has a par value of $1,000.If the firm's tax rate is 37%, what is the component cost of debt for use in the WACC calculation?

5.92%

5.80%

5.67%

5.64%

5.55%

Stocks A has a price of $50, an expected constant growth of 12%, and the expected return for the stock is 15%.If the dividend discount model holds:

A's expected dividend is $0.90

A's expected dividend is $1.05

A's expected dividend is $1.20

A's expected dividend is $1.35

A's expected dividend is $1.50

A stock pays dividends of $1.00 at t = 1.(D₁ is provided here, not D₀)It is growing at 20% between t =1 and t = 2, after which the growth rate drops to 13%, and will continue at that rate into the future.If the discount rate for this stock is 15%, what should be the value of the stock at t = 0?Hint:Make a diagram indicating ranges of the growth rates and the resulting dividends.

$53.04

$21.74

$55.70

$58.41

$61.16

Weir Inc. has a target capital structure of 30% debt, 25% preferred, and 45% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of retained earnings is 9.6%, and the tax rate is 40%. The WACC for Weir is:

6.81%

6.62%

6.77%

6.99%

6.60%