QUESTION 6 Using the data given for Clorox, what is the full year after tax cost of debt? O A 2.30% O B.3.44% O C. 4.60% O D.5.0096 a/ QUESTION 7 Using the Clorox information provided, what is the cost of their preferred stock? O A 12.16% OB 11.81% O C.8.14% O D.7.6096 QUESTION 8 Using the Clorox information provided, what is their cost of common equity using the CAPM method? O A 1.05% OB.3.0296 O C6.66% OD.7.85% QUESTION 9 Using the Clorox Information provided what is their cost of common equity using the DCF method? O A 3.70% O B.4.3296 OC: 4.94% OD 5,5396 Using the Clorox information provided what is their cost of common equity using the bond yield -plus-risk premium method? O A 5.44% OB.6.18% OC 6.60% OD.8.37% QUESTION 11 Using the information provided about Clorox, what is Clorox's weighted average cost of capital? O A: 4.3996 O B.4,44 OC 5.35% D. 6.059 QUESTION 12 If Clorox has a cost of capital of 13% and they have a project that earns them 10%, they should do the project True False Clorox Clorox wants to pursue a project that will broaden the markets in which they currently participate. They want to know what they should use for a burdle rate or WACC (weighted average cost of capital) You get the following information from their accountant: There are currently 20 year 6.5% coupon bonds, with a face value of $1,000, that pay semi- annual payments and are non-callable available at a price of S1015 Preferred stock sells for $215 and pays an annual dividend of $17.50. Clorox has a current stock price of $168.68 per share. The stock has a Beta of 76 and pays a dividend of 54.64 per year. The current risk free rate is 5% and the market risk premium is 8:19. The dividend growth rate is expected to be 2.7% a year. The bond-vield risk premium is 296 Clorox has a target capital structure of 50% debt 10% peeferred stock and 40 common equity Clorox has a tax rate of 21 5% INTEL The following is information for Intel. Intel wants to pursue a new type of artificial intelligence (AI) chip that would be used in autonomous vehicles. They want to know what they should use for their WACC (weighted average cost of capital) There are currently 20 year 4.7% coupon bonds that pay semi-annual payments and are non- callable available at a price of $986.30 and a face value of $1.000. Preferred stock sells for $197.13 and pays on minua dividend of 515,75, The current risk free rate is 1.5% and the market risk premium is 6.9% Intel's common stock has BETA of 39 It sells for a price of 553.69 per share and pt an mual dividend of $1.39. The dividend growth rate is expected to be 28% a you. The bond yield tisk pretium i 25 Intel was atorget capital structure of 45% debe 5% preferred Hock and the rest is common equity Intel's tax rate is 21.35