include formulas and show all work.

I want to learn how to do the problems, but I find the book and lecture notes to be very confusing. Please help me understand. Thanks.

QUESTION 1

1. The Holmes Company's currently outstanding bonds have a 10% yield to maturity. Holmes believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 40%, what is Holmes' after-tax cost of debt?
2. a.4%
3. b.5%
4. c.6%
5. d.7%
6. e.8%

0.25 points

QUESTION 2

1. The Evanec Company's next expected dividend, D1, is $3.18; its growth rate is 6%; and its common stock now sells for $36.00. New stock (external equity) can be sold to net $32.40 per share.
2. Using the Gordon Model, what is Evanec's cost of retained earnings, r_s?
4. a.14.44%
5. b.14.53%
6. c.14.67%
7. d.14.78%
8. e.14.83%

0.25 points

QUESTION 3

1. What is Evanec's percentage flotation cost, F?
2. a.8.00%
3. b.9.00%
4. c.10.00%
5. d.11.00%
6. e.12.00%

0.25 points

QUESTION 4

1. Using the Gordon Model, what is Evanec's cost of new common stock, r_e?
2. a.14.91%
3. b.15.81%
4. c.16.32%
5. d.16.24%
6. e.17.59%

0.25 points

QUESTION 5

1. You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.00%, the cost of preferred is 7.50%, and the cost of retained earnings is 12.00%. The firm will not be issuing any new stock. What is its WACC?
2. a.8.93%
3. b.7.59%
4. c.6.96%
5. d.7.68%
6. e.6.69%

0.25 points

QUESTION 6

1. The Sarco Company has a target capital structure of 30% debt, 10% preferred stock and 60% common equity from retained earnings. Sarco finished its most recent fiscal with $57 million in retained earnings and would like to raise capital to expand its operations.
2. Given the information provided above, What is Sarco's retained earnings breakpoint?
3. a.$92,000,000
4. b.$93,000,000
5. c.$94,000,000
6. d.$95,000,000
7. e.$96,000,000

0.25 points

QUESTION 7

1. Given the information provided above, how much new debt can Sarco raise and still maintain its current capital structure?
2. a.$28,300,000
3. b.$28,400,000
4. c.$28,500,000
5. d.$28,600,000
6. e.$28,700,000

0.25 points

QUESTION 8

1. Given the information provided above, how much new preferred stock can Sarco raise and still maintain its current capital structure?
2. a.$9,500,000
3. b.$9,600,000
4. c.$9,700,000
5. d.$9,800,000
6. e.$9,900,000