1)

Garden Tools Inc. has bonds, preferred stock, and common stock outstanding. The number of securities outstanding, the current market price, and the required rate of return for these securities are stated in the table below. The firm's tax rate is 35%.

Calculate the firm's WACC adjusted for taxes using the market information in the table.

Round the answer to two decimal places in percentage form.

__________Number of securities outstanding__Selling Price__Required rate of return

Bonds 1,850 $1,208 10.60%

Preferred Stocks 5,706 $97.05 18.41%

Common Stocks 1,312 $125.69 14.39%

2)

Calculate the expected return on stock of Time Saver Inc.:

Sate of economy________Probability of the states____Percentage returns ___

Economic recession 25% 6.9%

Steady economic growth 43% 4.1%

Boom Please calculate It -4.3%

Round the answer to two decimal places in percentage form.

3)

Blue Crab, Inc. plans to. issue new bonds, but is uncertain how the. market would set the yield to maturity. The bonds would be 26-year to maturity, carry a 11.54 percent annual coupon, and have a $1,000 par value. Blue Crab, Inc has determined that these bonds would sell for $1,357 each. What is the yield to maturity for. these bonds?

Round the answer to two decimal places in percentage form.