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EF10:44 528- D ……. Take Quiz PeteCorp's stock has a Beta of 1.43. Its dividend is expected to be $3.03 next year, and will grow by 6% per year after that indefinitely. Assume the risk-free rate is 4%, and the Market Risk Premium is 6%. The stock price would currently be estimated to be $________ Round your FINAL answer to 2 decimal places (example: 12.3456 = 12.35), but do NOT round any intermediate work. Margin of error for correct responses: +/- .05. Question 8 2 pts Badger Corp. has an issue of 6% bonds outstanding with 6 months left to maturity. The bonds are currently priced at $985.38, and pay interest semiannually. The firm's marginal tax rate is 40%. The estimated risk premium between the company's stock and bond returns is 6%. The firm's expects to maintain a capital structure with 40% debt and 60% equity going forward. The company's W.A.C.C. is ____%. Round your final answer to 2 decimal places (example: enter 12.34 for 12.34%), but do not round any intermediate work in the process. Margin of error for correct responses: +/-.10 (%). @ 100% Exit
EF10:40 528- Take Quiz Question 9 3 pts Marie Corp. has $1,860 in debt outstanding and $2,737 in common stock (and no preferred stock). Its marginal tax rate is 30%. Marie's bonds have a YTM of 4.7%. The current stock price (Po) is $49. Next year's dividend is expected to be $2.45, and it is expected to grow at a constant rate of 7% per year forever. The company's W.A.C.C. is %. Round your final answer to 2 decimal places (example: enter 12.34 for 12.34%), but do not round any intermediate work in the process. [Note: Correct answer feedback may show more than 2 decimal places, but you should still follow instructions above for entering your answers.] Margin of error for correct responses: +/-.10 (%). Not saved Submit Quiz @ 100% Exit