1. Explain the role of investment banks in the underwriting process (150 words minimum and no plagiarism please)
2. The stock of Norbert Inc. is selling for $50 per share. The next annual dividend is projected to be $4.00 per share. Their growth rate is projected to be 6%. The corporate tax rate is 40%, what is the firms cost of common equity?
3. Fitzwillie Inc. issued 20 year annual bonds 5 years ago. They are non- callable 8% coupon bonds. They are currently priced at 975 percent of par. The company's corporate tax rate is 35%. What is the pretax cost of debt today? What is the after tax cost of debt?