Week 5 Individual Assignment – Highlighted are the correct answers to each of the problems. Refer to the pdfs for each question and tell how you get to the final answer. Write out the explanation according to the readings in the pdfs. Make sure you write down the step by step scenarios for each question of how you got the answers. Also, any work completed on excel must be embedded within the word file so that if the professor clicks on it he can see all of the calculations. Please follow these instructions carefully as points will be taken off for any little mistake.
5.1. Ontario Corporation may raise new capital in one of the following three ways. It has tax rate of 35%. Find the after-tax cost of new capital.
(A) It can sell common stock at $27 a share, which will pay a dividend of $2.25 next year. The expected rate of growth of dividends is 5% per annum forever. 13.33% ? 
(B) It can sell 8.5% bonds at $850 each, which will mature in 10 years. Assume that the bonds pay interest twice a year and the company pays taxes once a year. Approximately, 7.027%, exactly, 7.264% ?
(C) By selling $7 preferred stock at $60 a share, redeemable at par after 5 years. 11.67% ?
5.2. Quebec Company wants to issue discount bonds with a market value equal to 70% of their face value. The bonds will carry 4% coupon, paying interest semiannually, and they will mature after 15 years. The income tax rate of Quebec is 25%.
(A) Calculate the approximate yield-to-maturity of the bonds, and then the after-tax cost of debt for Quebec. 7.059%, 5.294% ?
(B) Using the concept of original issue discount, write an equation that would give the after-tax cost of debt for Quebec. Solve this equation by using WolframAlpha, Maple, or Excel to find the after-tax cost of debt for Quebec. 5.529 % ?
5.3. Nova Scotia Company has the following capital structure: 4.5 million shares of stock, selling at $25 each, with ß = 1.1; zero-coupon bonds with face amount $60 million, maturing in 10 years,…