A firm has bonds with 20 years to maturity, paying a $65 ann…

A firm has bonds with 20 years to maturity, paying a $65 annual coupon, face value of $1000, and current price of $986. If the firm’s tax rate is 21%, what is the firm’s after-tax (aka “effective”) cost of debt? (Express your answer as a percentage to two decimal places, 12.34 percent would be 12.34, for example.)

The current stock price for Waterman Enterprises is $446. Th…

The current stock price for Waterman Enterprises is $446. Their growth rate, g, is 9% per year, and they expect to pay a dividend of $[x] next year. What is the required rate of return on the stock, rS? (Express your answer as a percentage to two decimal places, 12.34 percent would be 12.34, for example.)