1. What is the weighted average cost of capital for a firm targeted financing with 40% debt and the rest with equity if the debt required a 15% after tax return and common equity requires 17% required return? Tax rate is 35%. (show all work in excel) 2. Company B is financed as follows: 70% with equity and 30% with debt. Debt has an interest rate of 8%. Company B trades common stock @ $25 per share and its most recent common stock dividendpaid was $2.00. Future dividends are expected to grow at 5%. Tax rate is 40%. What is Company B weight average cost of capital? (show all work in excel) 3. You decide to finance a new innovation with issuance of 5 million sharesof 11 years, 5% coupon bond with yield to maturity 7%, 10 million shares of preferred stock with dividend $4 and return of 10% and 800 million shares of common equity at current price of $30 per share. If its common stock has a beta of 1.25 an long term risk free rate is 3% and market risk premium is 7%. What is the weighted average cost of capital, with 45% tax? No worry about flotation cost. (show work in excel)

4. You plan to raise capital through issuing 60,000 shares of 9 years bond with a coupon rate of 7%. After tax cost of debt from these bond issuance is 5%. How much is the capital raised from issuing 60,000 shares of these bonds? Tax rate is 35%. (show work in excel) 5. What is the weighted average cost of capital for a firm using 50% common equity with a required return of 15%, 35% debt with after tax cost of debt 8%, 15% preferred stock with required return o 10%, and tax rate of 35%?? (show work in excel)