Question: 1. Multiple choice. All in %A. 3B. 5.4C. 4D. 5E. 7.7 Q.13.2. The capital structure of a company is composed of debt and equity as

1. Multiple choice. All in %A. 3B. 5.4C. 4D. 5E. 7.7

Q.13.2. The capital structure of a company is composed of debt and equity as follows. Given the following information, what is the after-tax cost of equity in the capital structure? The tax rate is %30. Equity Debt # of outstanding shares 100,000 Stock price (each) $85 Expected dividend per share $4 Dividend growth rate 3% # of outstanding bonds 5,000 Coupon rate 5% Bond price (each) $950 Years to maturity 7 Multiple Choice O 3%

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