1. TeleNyckel, Inc. has a beta of 1.5 and is trying to calculate its cost of equity capital. If the risk-free rate of return is 5 percent and the market risk premium is 9 percent, then what is the firm's after-tax cost of equity capital if the firm's marginal tax rate is 31 percent?

2. Freeze Systems has 20-year bonds outstanding with a coupon rate of 9 percent. Interest is paid annually. The face amount of each bond is $1,000. What is the company's pretax cost of debt if the bonds currently sell for $800?

3. RetRyder Hand Trucks has a preferred share issue outstanding that pays an annual dividend of S3.00 per year. The current cost of preferred equity for RetRyder is 12 percent. If RetRyder issues additional preferred shares that pay exactly the same dividend and the investment banker retains 9 percent of the sale price proceeds, what is the cost of new preferred shares for RetRyder?