FNAN522 Module 3 Homework_FNAN522 Module 3 Study Gude.

Question 1 Correct Mark 1.00 out of 1.00 Question 2 Correct Mark 1.00 out of 1.00 Started on Sunday, 10 November 2019, 6:36 PM State Finished Completed on Sunday, 10 November 2019, 7:01 PM Time taken 25 mins 12 secs Grade 20.00 out of 20.00 (100%) A company has a risk free rate of 3% and a risk premium of 6%. Its tax rate is 35%. What is the company's cost of debt? Select one: a. 3.90% b. 2.10% c. 3.15% d. 5.85% A company is thinking of issuing more common stock. Its stock's current market price is $50 a share with an expected dividend annual one year from today of $3 a share. Dividends are expected to grow 5% per year and there are no flotation costs. What is the company cost of new common stock? Select one: a. 11.00% b. 13.65% c. 65% d. 12.58%