Which of the following is NOT a capital component typically used to compute the weighted average cost of capital of a corporation?

Group of answer choices

Treasury Bonds

All of these

Common Stock

Preferred Stock

Corporate Bonds

The common stock of Anthony Steel has a beta of 1.4. The risk-free rate is 4.8

percent and the required return on the market (rM) is 10.2 percent. Assume the firm

will be able to use retained earnings to fund the equity portion of its capital budget.

What is the companys cost of retained earnings, rs?

Group of answer choices

11.96%

12.36%

12.06%

12.26%

12.16%

Reingaart Systems is expected to pay a $3.3 dividend at year end (D1 = $3.3),

the dividend is expected to grow at a constant rate of 4.6% a year, and the common

stock currently sells for $61 a share. The before-tax cost of debt is 6.3%, and the tax

rate is 24%. The target capital structure consists of 45% debt and 55% common

equity. What is the companys WACC if all equity is from retained earnings?

Group of answer choices

7.76%

7.66%

8.06%

7.86%

7.96%