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(Cost of debt) Sincere Stationery Corporation needs to raise $507,000 to improve its manufacturing plant. It has decided to issue a $1,000 par value bond with an annual coupon rate of 10.4 percent with interest paid semiannually and a 15 -year maturity. Investors require a rate of return of 7.1 percent. a. Compute the market value of the bonds. b. How many bonds will the firm have to issue to receive the needed funds? c. What is the firm's after-tax cost of debt if the firm's tax rate is 34 percent? (Related to Checkpoint 14.1) (Weighted average cost of capital) The target capital structure for QM Industries is 45 percent common stock, 10 percent preferred stock, and 45 percent debt. If the cost of common equity for the firm is 17.2 percent, the cost of preferred stock is 10.7 percent, the before-tax cost of debt is 8.7 percent, and the firm's tax rate is 35 percent, what is QM's weighted average cost of capital? (Weighted average cost of capital) The target capital structure for Jowers Manufacturing is 48 percent common stock, 13 percent preferred stock, and 39 percent debt. If the cost of common equity for the firm is 19.8 percent, the cost of preferred stock is 12.1 percent, and the before-tax cost of debt is 9.2 percent, what is Jowers' cost of capital? The firm's tax rate is 34 percent. (Related to Checkpoint 14.4) (Flotation costs and NPV analysis) The Faraway Moving Company is involved in a major plant expansion that involves the expenditure of $180 million in the coming year. The firm plans on financing the expansion through the retention of $132 million in firm earnings and by borrowing the remaining $48 million. In return for helping sell the $48 million in new debt, the firm's investment banker charges a fee of 300 basis points (where one basis point is 0.01 percent). If Faraway decides to adjust for these flotation costs by adding them to the initial outlay, what will the initial outlay for the project be