Student Name (Please Print) Keystone Corporation will issue new common stock to finance an expansion. The Stine common stock just paid a $1.50 dividend, and dividends are expected to grow constant rate indefinitely. The stock sells for $45, and flotation expenses of 5% me selling price will be incurred on new shares What is the cost of new common stock be for Keystone Corp.? A. 11.33% B 11.51% C 11.6096 D. 11.79% b) Crandal Dockworks is undergoing a maior expansion. The expansion ssuing new 15-year, $1,000 par, 9% annual coupon bonds. The market bonds is $1,070 each. Crandal's flotation expense on the new bonds will be bond. Crandal's marginal tax rate is 35% What is the after-tax cost of debt newly-issued bonds? A 10.86% B. 8.1296 C 5.69% D 10.25% oing a major expansion. The expansion will be financed by 9% annual coupon bonds. The market price of the Refer to the table below for questions 7, 8, 9 and 10. Bay Land, Inc. has the following returns for the various states of the economy: Return State Boom Normal Bust Probability 0.45 0.25 0.30 20% 10% 5% 7) What is the Expected Return? A. 13 B. 10 C. 12 D. 8 8) What is the Variance? A. 112.5 B. 10.61 C. 115 D. 9.2 Page 2 of 9