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1 “Continue considering Firm XYZ. If the dividends for Firm XYZ are the same for common and preferred stock, and the price for common stock is \$82. What would be the cost of equity? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05”

2 “The expected return on a firm’s equity is 11%, and the firm has a yield to maturity on its debt of 3%. Debt accounts for 40%, common equity for 55% and preferred equity for 5% of the firm’s total market value. If its tax rate is 20%, and the cost of preferred equity is 20%, what is this firm s WACC? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05”

3 “Firm UVW has a face debt value of \$32 Million USDs trading at 92% with a pre-tax weighted cost of 7%. Firm UVW’s common equity for the year was valued at \$100 Million of USDs and preferred equity for \$9 Million of USDs. The Preferred equity rate was calculated to be 15%. However, the common equity was to be calculated using CAPM approach, with a 3% risk free rate and a 15% market risk premium rate, assuming a Beta of 1. If the tax rate is 30%, what is Firm UVW s WACC? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05”

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