What is the average earnings growth rate for this company? 2. What are the expected common stock dividend for 2017? 3. What is the pre-tax Cost of capital for Common Stock? 4. What is the after -tax Cost of capital for common stock? 5. When does the preferred stock mature? 6. What is the pre-tax cost of capital for preferred stock? 7. What is the after-tax cost of capital for preferred stock? 8. How many years until the bond matures? 9. How much interest does the bond pay annually in $s? 10. What is the pre-tax cost of capital for bonds? 11. What is the after-tax cost of capital for bonds? 12. How much total capital does the company have? 13. What % of capital is from a. Common stock b. Preferred stock c. Bonds 14. What is the companys weighted cost of capital? 15. Depending on your answer to question 14, if the company had unlimited money to invest, what should it invest in? a. Project A (yes or no) b. Project B (yes or no) c. Project C (yes or no) 16. Depending on your answer to question 14, if you had $175,000 to invest, which project(s) should it invest in?

Common Stock	EPS 2012 $ 3.00 2013 $ 3.06 2014 $ 3.12 2015 $ 3.18 2016 $ 3.25 Dividend Payout is 30% earnings Current Stock Price $ 21.60 Amount of Capital Provided Common Stock $ 100,000 Retained Earnings $ 5,000,000
Preferred Stock	Issue Date 01/01/1997 Par Value $ 100.00 Dividend $3.75 Current Stock Price $75.00 Amount of Capital Provided $ 1,000,000
Bonds	Par Value $ 1,000.00 Coupon Rate 7.00% Maturity Date October 2041 Current Bond Price $ 785.00 Tax Rate 35% Amount of Capital Provided $ 2,000,000
Project	A B C 0 (75,000) (150,000) (1000,000) 1 20,000 50,000 15,000 2 15,000 40,000 20,000 3 18,000 30,000 25,000 4 20,000 25,000 28,000 5 20,000 15,000 30,000 IRR 7.5% 2.7% 5.2%