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15. Silicon Corp. recently issued 10-year, 18 percent coupon bonds at par value. Silicon beta is 0.8; the optimal capital structure contains 60 percent debt/40

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15. Silicon Corp. recently issued 10-year, 18 percent coupon bonds at par value. Silicon beta is 0.8; the optimal capital structure contains 60 percent debt/40 percent equity, and the marginal tax rate is 40 percent. If the expected return on the market is 15 percent and the treasury bill rate is 3 percent, estimate Silicon's weighted average cost of capital. a. 12.0 percent 6, 11.5 percent 9.4 percent d. 14.0 percent e. 12.5 percent Sales Calculate the current price per share (Po) for Olson Corporation, given the following information. The data all pertain to the year just ended. - 100,000 units Sales price per unit - $50.00 Variable cost per unit $40.00 Fixed cost - $50,000 Debt outstanding - $150,000 Interest rate on debt 10 percent Tax Rate = 40 percent Common stock shares outstanding issues or 40,000 shares S AT IS a Santos Betas Rhotimad capital structure 2n de bergent KRF T ute ernst-3 percentation takes kwh 10 percent Pay-out ratio = 30 percent Growth rate in earnings and dividends = 5 percent $65.74 d. $88.36 $69.03 e. $23.10 $46.02 i priser sa Poltorio Co hide ale te the year justered nte the follow 1010 RE $10.33 Intorstil on date Tax Rate lo perceol 40 percent

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