1) A firm has 1 million shares outstanding with a book value per share of $10 per share. The stock sells for a price of $20 per share. The firm's bonds have a par value of $8 million and are currently selling at a price of 120 percent of par. What is the appropriate proportion of equity to use in the WACC calculation?

2)A company has $20 million face value of bonds outstanding that pay a coupon of 10 percent annually and have 8 years to maturity. The bonds have a 12 percent yield to maturity. What value should be used for debt in the company's WACC calculation?

3)Eden Co. has bonds outstanding with a coupon rate of 8 percent, a yield to maturity of 10 percent and a current yield of 9 percent. If the firm's tax bracket is 35 percent, what is its after-tax cost of debt?

4)The common stock of Hopewell Co. has a beta of 1.1. The Treasury bill rate is 5 percent and the market risk premium is estimated at 7 percent. Hopewell's capital structure is 40 percent debt with a yield to maturity of 6.9 percent. If the company pays no taxes, what is its weighted-average cost of capital?