Which one of the following is the primary determinant of a firm's cost of capital? Use of the funds. Applicable tax rate. Cost of debt. Debt-equity ratio. Cost of equity. Stock in Country Road Industries has a beta of 0.89. The market risk premium is 7.5 percent, and T-bills are currently yielding 5 percent. The company's most recent dividend was $1.8 per share, and dividends are expected to grow at a 4.5 percent annual rate indefinitely. If the stock sells for $33 per share, what is the company's cost of equity using SML/CAPM method? (Do not round your intermediate calculations.) 10.2% 8.91% 11.68% 10.94% 7.23% Continue from prior question. What is the company's cost of equity using Dividends Growth method? (Do not round your intermediate calculations.) 10.2% 11.68% 10.94% 7.23% 8.91% Continue from prior question. What is the average of the two cost of equity? (Do not round your intermediate calculations.) 10.2% 8.91% 10.94% 11.68% 7.23% You have $25,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 15% and Stock Y with an expected return of 8%. If your goal is create a portfolio with an expected return of 12.5%, how much money will you invest in Stock X? (That is weight X * 25,000.) 16, 071 16, 714 15, 267 16, 875 44, 643 A portfolio has 85 shares of stock A that sell for $32 per share and 105 shares of Stock B that sell for $29 per share. What is the portfolio weight of Stock A? 0.5446 0.5668 0.5282 0.4718 0.4618