\begin{tabular}{|r|r|r|r|r|} \hline & & & \\ \hline & & & \\ \hline & Point Value & & \\ \hline 13 & 2 & Dividend today & & \\ \hline & & Historical and Expected growth rate & 1.5 \\ \hline & & Current Stock price & 10% \\ \hline & & & 35 \\ \hline & & & \\ \hline & & What is the required return on the stock? & \\ \hline \end{tabular} \begin{tabular}{|l|r|r|r|} \hline Company XYZ: & & & \\ \hline Debt & Market Rate & % total capitalization \\ \hline Preferred & 9.00% & 55% \\ \hline Common & 11.00% & \\ \hline Beta (XYZ Common Stock) & 17.50% & 10% \\ \hline & 1.30 & \\ \hline (Stock) Market return & 8.50% & \\ \hline T-Bill rate & & \\ \hline & & \\ \hline Point Value & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline 23 & 5 & Calculate the market risk premium given the data above \\ \hline & & \end{tabular} \begin{tabular}{|l|l|l|} \hline 25 & 5 & Calculate the after tax cost of debt if the tax rate is 30%. \\ \hline & \end{tabular} \begin{tabular}{|l|l|l|} \hline 15 & 2 & Using the Gordon Growth model (constant growth model) \\ \hline & Use Free Cash Flow as a substitute for dividends. \\ \hline & What is the value of the firm is that firm produces $750k in Free Cash Flow? \\ \hline & Use a constant growth rate of 5% and required return of 15%. \\ \hline \end{tabular}