Final Exam – ProblemsCovers Chapters 9, 10, 11, 14, 15, and 2110 multiple choice problemsTime limit:1.5 hours.Due by Sunday at 11:59 p.m. ET.Attempt HistoryAttemptTimeScoreLATESTAttempt 136 minutes90 out of 100Score for this quiz:90out of 100Submitted Jun 28 at 11:23pmThis attempt took 36 minutes.Question 110 / 10 ptsAssume that Kish Inc. hired you as a consultant to help estimate its cost of commonequity. You have obtained the following data: D0= $0.90; P0= $27.50; and g = 7.00%(constant). Based on the DCF approach, what is the cost of common equity assumingno flotation costs?9.29%9.68%10.08%Correct!10.50%
10.92%Question 210 / 10 ptsBenge Automotive issued a corporate bond with a face value of $1,000, with a 10%annual coupon rate paid semiannually. The bond matures in 12 years and sells at aprice of $1,080. What is the component cost of debt for use in the WACC calculation?
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