Question: please answer questions 10-14 0 0 0 0 0 O 0 0 0 0 0 0 10. If the risk-free rate = 2%, beta =

0 0 0 0 0 O 0 0 0 0 0 0 10. If the risk-free rate = 2%, beta = 2 and the market risk premium is 10%, the cost of equity > 20%. 11. If the last dividend paid = $5, the dividend growth rate = 6% and the current stock price = $100, the cost of equity > 11%. 12. Both bank loans and bond sales are examples of debt capital. 13. Yield-to-maturity and are not synonymous. 14. It is fair to think of preferred stock as a perpetuity. 15. The after-tax cost of debt > Rd. 16. Retained earnings is included in the weight of equity. 17. When solving for the weights for privately held firms, book values are more commonly used 18. Other things equal, the greater the WACC, the greater the NPV will be 19. If 1000 shares of stock sell for $20 per share and 50 bonds sell for $800 cach, their combined market value 10%. 0 O 0 0 O O O O O 0 De here to search o DOLL F10 F11 wert Delete PU T 26 A ) O Num Lock 4 Backspace 6 7 8 9 W T Y o U P 7 G H J K L Enter V
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