Weight of debt . Primus Ltd has in its balance sheet RM 50,000,000 long term debt (50,000 bonds, RM 1,000 par value) and RM 30,000,000 common stocks (10,000 shares outstanding). Its 15 year noncallable bond pay 8% coupon on semi- annual basis and sell for RM 900. Its shares currently traded at RM15. What is the weight of cost of debt? WACC and capital structure 7. Honey Foods' (HF) balance sheet shows a total of $25 million long-term debt with a coupon rate of 8.50%. The yield to maturity on this debt is 8.00%, and the debt has a total current market value of $27 million. The balance sheet also shows that the company has 10 million shares of stock, and the stock has a book value per share of $5.00. The current stock price is $20.00 per share, and stockholders' required rate of return, r, 1s 12.25%. The company recently decided that its target capital structure should have 35% debt, with the balance being common equity. The tax rate is 40%. Calculate WACCs based on book, market, and target capital structures, and then find the sum of these three WACCs. WACC and equity from RE . Harley Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information: -. The firm's noncallable bonds mature in 20 years, have an 8.00% annual coupon, a par value of $1,000, and a market price of $1,050.00. . The company's tax rate i1s 40%. . The risk-free rate is 4.50%, the market risk premium is 5.50%, and the stock's beta 1s 1.20. . The target capital structure consists of 35% debt and the balance is common equity. The firm uses the CAPM to estimate the cost of equity, and it does not expect to issue any new common stock. What is its WACC? o 0 e