1. Fender-Bender Insurance Company's common stock is currently trading for a price of $17 and is expected to pay a dividend of $1 per share next year. There has been a steady growth in dividends of 4.4 percent per year and the market expects this to continue. What is the cost of equity for Fender-Bender Insurance Company?

2. As part of an investment analysis, the Chief Investment Officer of Seminole Insurance Company asks you to determine the cost of equity for California Power and Light Company (CPLC). You find that the equity beta for CPLC is 1.07, the expected return on the market is 9 percent, and the risk free rate is 2.5 percent. What is the cost of equity for CLPC?

3. Ward Financial Services Company has a bond issue currently outstanding that has 17 years left until maturity. The bond has a $1,000 face value and is currently selling for $1,100, has a coupon rate of 11 percent, and pays coupon payments annually. What is the cost of debt for Ward Financial Services Company?