Question: QUESTION 1 2 points Save Answer You were hired as a count to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and

QUESTION 1 2 points Save Answer You were hired as a count 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 carings is 12.50%. The firm will not be issuing any new stock. What is its WACC) O a. 11. 1696 Ob 10.98% OC 9.15% Od.988% De 7.50% 2 points Save Awwer QUESTION 2 You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: D 1 - $1.75: PO $47.50 -7.00% (constant and F -5.00%. What is the cost of equity raised by selling new common stock? Oa 10.885 Ob 8.9254 OC 9.25% O d. 10.77% Oe. 12.1894 2 points Save Answer QUESTION 3 Several years ago the Jakob Company sold a $1,000 par value, noncallable bond that now has 20 years to maturity and a 7.00% annual coupon that is paid semiannually. The bond currently sells for $1,000, and the company's tax rate is 40%. What is the component cost of debt for use in the WACC calculation? Do not round your intermediate calculations Oa5.17% Ob.4.455 Oc3825 Od. 3.61%. 0.4.2016

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