13.The last dividend paid by Klein Company was $1.00.Klein's growth rate is expected to be a constant 5 percent for 2 years, after which dividends are expected to grow at a rate of 10 percent forever.Klein's required rate of return on equity (k_s) is 12 percent.What is the current price of Klein's common stock?

a.$21.00

b.$33.33

c.$42.25

d.$50.16

9.An analyst is trying to estimate the intrinsic value of the stock ofHarkleroad

Technologies.The analyst estimates thatHarkleroad'sfree cash flow during the

next year will be $25 million.The analyst also estimates that the company's free

cash flow will increase at a constant rate of 7 percent a year and that the company's

cost of capital is 10 percent.Harkleroadhas $200 million of long-term debt, and

30 million outstanding shares of common stock.

What is the estimated per-share price ofHarkleroadTechnologies' common stock?

a.$ 1.67

b.$ 5.24

c.$18.37

d.$21.11

23. You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity.Theafter-tax cost of debt is 6.00%, the cost of preferred is 7.50%, and the cost of retained earnings is 12.75%.The firm will not be issuing any new stock.What is its WACC?

a.8.98%

b.9.26%

c.9.54%

d.9.83%

24.Flaherty Electric has a capital structure that consists of 70 percent equity and 30 percent debt.The company's long-term bonds have a before-tax yield to maturity of 8.4 percent.The company uses the DCF approach to determine the cost of equity.Flaherty's common stock currently trades at $40.5 per share.The year-end dividend (D₁) is expected to be $2.50 per share, and the dividend is expected to grow forever at a constant rate of 7 percent a year.The company estimates that it will have to issue new common stock to help fund this year's projects.The company's tax rate is 40 percent.What is the company's weighted average cost of capital, WACC?

a.10.73%

b.10.30%

c.11.31%

d.7.48%