1. Judy's Boutique just paid an annual dividend of $3.37 on its common stock. The firm increases its dividend by 3.70 percent annually. What is the company's cost of equity if the current stock price is $42.52 per share?
10.98%
11.30%
11.92%
2. A firm has a cost of debt of 5.4 percent and a cost of equity of 14.9 percent. The debt–equity ratio is 1.20. There are no taxes. What is the firm's weighted average cost of capital?
8.10%
9.72%
10.23%
3. Calculate the total cost of the dollar if the MNC were to implement part a (CALL) and part b (PUT) of this question for the following maturity prices: 55p, 60p,65p,70p,75p.