1. A firm has a debt-to-equity ratio of 0.52. Its cost of equity is 22%, and its cost of debt is 13%. If the corporate tax rate is 36%, what would it’s cost of equity be if the firm was all equity financed? (Answer in percentage terms. Round answer to 2 decimal places, do not round intermediate calculations)
2. The common stock of Margot, Inc. is selling for $65 a share. The par value per share is $1. Currently, the firm has a total market value of $93317. How many shares of stock will be outstanding if the firm does a 5-for-2 stock split? (Round answer to 0 decimal places, do not round intermediate calculations)