Question: Explain how to solve them and show work for each please 7. Assume that you are a consultant to Broske Inc, and you have been

Explain how to solve them and show work for each please  Explain how to solve them and show work for each please

7. Assume that you are a consultant to Broske Inc, and you have been provided with the following data: D $0.67; P.-$45.00; and g-8.00% (constant) what is the cost of equity from retained earnings based on the DCF approach? a.. 7.59% by 9.49% 11.10% a. 10.15% e. 8.63% 8. A. Butcher Timber Company hired your consulting firm to help them estimate the cost of equity. The yield on the firm's bonds is 6.75%, and your firm's economists believe that the cost of equity can be estimated using a risk premium of 3.85% over a firm's own cost of debt. What is an estimate of the firm's cost of equity from retained earnings? a. 10.60% b. 9.54% . 12.19% d. 12.51% e. 7.95% 9. To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid semiannually, sells at a price of $1,025, and has a par value of $1,000. If the firm's tax rate is 40%, what is the component cost of debt for use in the WACC calculation? Do not round your intermediate calculations. a. 5.93% b. 5.93% - 5.39% d. 6.09% e. 4.69% 10. You were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of retained earnings is 14.75%, and the tax rate is 40%. The firm will not be issuing any new stock. What is Quigley's WACC? Round final answer to two decimal places. Do not round your intermediate calculations. a. 12.19% b. 8.36% 9.17% d) 10.08% e. 8.87%

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