1. Abler Corporation has corporate bonds trading in the market at $820. These bonds have $1000 face (or maturity) value and pay an 8% stated (or coupon) rate annually ($40 every six months). These bonds have 12 years to maturity. What is the pretax cost of Abler Corporation's debt? 2. Bob Corporation has a pretax cost of debt of 12% and is in the 35% marginal tax bracket. What is Bob's after-tax cost of debt? 3. Ted Corporation wants to estimate its cost of common equity using the Capital Asset Pricing Model. Assume the risk-free rate is 2.5%, the market risk premium is 6% and Ted Corporation has a Beta of 8. Using the capital asset pricing model, what is Ted's estimated cost of common equity? 4. Mary Corporation has $750,000 is outstanding debt with a market value of $750,000. Mary has common equity on the books at a value of $1,000,000 but it is selling in the market at $1,700,000. What are the book weightings for Mary Corporation? 5. Continuing from the prior problem, what are the market weightings for Mary Corpora- tion