1. Sam invested $4,300 in a chocolate company. he received $127 in dividends over the next year and then sold the stock for $4,250. What was his return on % to 2 decimal places?
2. You were hired as a consultant to Keys Company, and you were provided with the following data: Target capital structure: 25% debt, 15% preferred, and 60% common equity. The after-tax cost of debt is 4.00%, the cost of preferred is 7%, and the cost of retained earnings is 11.00%. The firm will not be issuing any new stock. What is the firm’s WACC?