=+Other information The debenture pays a coupon of 9 per cent on par value.

The coupons are payable annually - the next is due in 12 months.

The debenture is currently trading at 105.50.

The balance sheet shows the nominal value, not the market value.

Tax is payable at 30 per cent (relevant to question h only).

Use the capitalisation figure given in b for the equity weight.

You can ignore short-term debt.