1. Juno Mining Company plans a $200 million debt issue. The debt's YTM is 10%, and Juno has a 40% tax rate. What is its after-tax cost of debt?

2. Butternut Company sells for $10 per share. Its current dividend is $1 per share and is expected to grow at 10% a year forever. Calculate Butternut's cost of internal equity.

3. ABC is planning a $200 million project, to be partly financed by issuing bonds with a coupon rate of 8%, 10 year maturity, a $1,000 face value, and a 2% flotation cost. ABC's common stock sells for $15 per share, pays a dividend of $1.50 a share and the dividend is expected to grow at 6% a year forever. ABC expects to have $60 million in retained earnings for this project. ABC has a target capital structure of 25% and 75% common equity. Calculate its weighted cost of capital for this project. Use a 40% tax rate.