1. Last year, Wilderness Adventures paid an annual dividend of $2.40 per share. The firm recently announced that it will increase its dividend by a constant 6.0 percent annually. What is one share of this stock worth today at a required rate of 15.2 percent?

$28.74

$27.65

$28.86

$27.16

2. Excelor stock is expected to pay $2.90 per share as its next annual dividend. The firm has a policy of increasing the dividend by 10.5 percent annually. The stock has a market price of $13.63 and a beta of 2.7. The market risk premium is 8.55 percent and the risk-free rate is 4.85 percent. What is the cost of equity?

29.21 percent

30.25 percent

28.78 percent

29.86 percent

3. The 8.00 percent preferred stock of Ajax Unlimited is selling for $92.20 a share. What is the cost of preferred stock if the risk-free rate is 3.90 percent ?

8.68 percent

7.74 percent

11.87 percent

12.48 percent

4. Marvin's Interiors issued 9-year bonds 2 years ago. The bonds have a face value of $2,900, a 6.0 percent, semiannual coupon, and a current market price of $1,939. What is the pre-tax cost of debt?

14.20 percent

13.45 percent

15.15 percent

14.71 percent

5. A semiannual, 8 percent bond matures in 14 years and has a face value of $1,000. The market quote on this bond is 1,029. What is the aftertax cost of debt if the tax rate is 32 percent?

7.60 percent

5.21 percent

7.02 percent

4.99 percent

Please answer all questions.