could I have these answered please

--'-- '------'-'- ' 1. Calculating Cost of Equity. Appin Apples Ltd has just paid a dividend of $2.35 per share on its ordinary shares. The company is expected to maintain a constant 5% growth rate in its dividends indefinitely. If the share price is $44, what is the company's cost of equity? Lo 12.1 Calculating Cost of Equity. Barellan Builders Ltd ordinary shares have a beta of 0.37. If the risk-free rate is 3.6% and the expected return on the market is 11%. what is Barellan's cost of equity capital? to 12.1 Estimating the DCF Growth Rate. Suppose Biloela Fashions Ltd just paid a dividend of $1.82 per share on its ordinary shares. The company paid dividends of $1.36. $1.46. $1.53 and $1.68 per share in the last four years. If the share price is $55. what is your best estimate of the company's cost of equity capital using arithmetic and geometric growth rates? Lo 12.1 Calculating Cost of Preference Shares. Bicheno Pinocchio Bank has an issue of preference shares with a xed dividend of $3.80 that just sold for $89. What is the bank's cost of preference shares? LO 12.1 Calculating Cost of Debt. Cape Leveque Ltd is trying to determine its cost of debt. The firm has a debt issue outstanding with seven years to maturity that is quoted at 103% of face value. The issue makes half-yearly payments and has an embedded cost of 5.1% annually. What is the company's pre-tax cost of debt? If the tax rate is 30%. what is the after-tax cost of debt? Lo 12.2 Calculating Cost of Debt. Carrathool School Ltd issued a 30~year, 6.3% halfyearly bond eight years ago. The bond currently sells for 110% of its face value. The company's tax rate is 22%. a. What is the pre-tax cost of debt? b. What is the after-tax cost of debt? c. Which is more relevant, the pre-tax or the after-tax cost of debt? Why? 1.0 12.2 Calculating Cost of Debt. For the firm in Problem 6, suppose the book value of the debt issue is $135 million. In addition, the company has a second debt issue. a zero coupon bond With 12 years left to maturity; the book value of this issue is $65 million, and it sells for 64.3% of par. What is the total book value of debt? The total market value? What is the after-tax cost of debt now? Lo 12.2 Calculating WACC. Dampier Diamond Mines Ltd has a target capital structure of 75% ordinary shares, 5% preference shares and 20% debt. its cost of equity ls 11.3%. the cost of preference shares is 4.995 and the cost of debt ls 5.8%. The relevant tax rate is 30%. a. What is the firm's WACC under a classical tax system? b. The company CEO has approached you about Dampier Diamond's capital structure. He wants to know why the company does not use more preference-share financing, since it costs less than debt. What would you tell the CEO? LO 12.3 CRITICAL THINKING AND CONCEPTS REVIEW 12.1 WACC. On the most basic level, if a firm's WACC is 12%, what does this mean? LO 12.3 12.2 Book Values versus Market Values. In calculating the WACC, if you had to use book values for either debt or equity, which would you choose? Why? LO 12.3 12.3 Project Risk. If you can borrow all the money you need for a project at 6%, does it not follow that 6% is your cost of capital for the project? LO 12.4 12.4 WACC and Taxes. Why do we use an after-tax figure for cost of debt but not for cost of equity in a classical tax system? Why do we change this for an imputation system? LO 12.4