The firms marginal tax rate is 36 walters after-tax cost of


1. Hank Corp.'s common stock currently sells for $32 per share. The most recent dividend (Do) was $2.28, and the expected growth rate in dividends per year is 8%. The cost of common equity, Re, is ____%.

2. Jesse Corp.'s stock has a Beta of 1.19. The risk-free rate is 5%, and the expected market return is 11%. The firm's cost of common equity, Re, is _____%

3. Walter Corp.'s outstanding bonds have a 5.8% coupon, 5 years left until maturity, and are currently priced at $974.67. The firm's marginal tax rate is 36%. Walter's after-tax cost of debt is ____%.

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Financial Management: The firms marginal tax rate is 36 walters after-tax cost of
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