1

Micro Spinoffs Inc. issued 20-year debt a year ago at par value with a coupon rate of 9%, paid annually. Today, the debt is selling at $1,020. If the firms tax bracket is 30%, what is its percentageafter-taxcost of debt?Assume a face value of $1,000. Do not round calculations.. 2 decimal places

After-tax cost of debt%=

2

Beta of common stock = 1.3Treasury bill rate = 4%Market risk premium = 7.6%Yield to maturity on long-term debt = 5%Book value of equity = $450 millionMarket value of equity = $900 millionLong-term debt outstanding = $900 millionCorporate tax rate = 35%What is the companys WACC? do not round calculations.. 2 decimal places

WACC%=

3

The total book value of WTCs equity is $9 million, and book value per share is $24. The stock has a market-to-book ratio of 1.5, and the cost of equity is 14%. The firms bonds have a face value of $6 million and sell at a price of 110% of face value. The yield to maturity on the bonds is 5%, and the firms tax rate is 40%. What is the companys WACC? do not round calculations... 2 decimal places

WACC%=