1.KatyDid Clothes has a $120 million (face value) 30-year bond issue selling for 101 percent of par that carries a coupon rate of 9 percent, paid semiannually.

What would be KatyDid's before-tax component cost of debt?

cost of debt: _____%

2.ILK has preferred stock selling for 96 percent of par that pays a 8 percent annual coupon.

What would be ILKs component cost of preferred stock?(Round your answer to 2 decimal places.)

cost of preferred stock: ____ %

3.FarCryIndustries, a maker of telecommunications equipment, has 5 million shares of common stock outstanding, 2 million shares of preferred stock outstanding, and 20,000 bonds. Suppose the common shares are selling for $29 per share, the preferred shares are selling for $15.50 per share, and the bonds are selling for 98 percent of par.

What would be the weight used for equity in the computation of FarCrys WACC?(Round your answer to 2 decimal places.)

weight used: ____%

4.FarCry Industries, a maker of telecommunications equipment, has 5 million shares of common stock outstanding, 2 million shares of preferred stock outstanding, and 20,000 bonds. Suppose the common shares are selling for $24 per share, the preferred shares are selling for $13.00 per share, and the bonds are selling for 97 percent of par.

What weight should you use for debt in the computation of FarCrys WACC?

weight used: ____%

5.FarCry Industries, a maker of telecommunications equipment, has 6 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 45,000 bonds. Suppose the common shares sell for $27 per share, the preferred shares sell for $14.50 per share, and the bonds sell for 99 percent of par.

What weight should you use for preferred stock in the computation of FarCrys WACC?(Round your answer to 2 decimal places.)

weight used: ______%

6. Suppose that TapDance, Inc.s, capital structure features 60 percent equity, 40 percent debt, and that its before-tax cost of debt is 7 percent, while its cost of equity is 12 percent. Assume the appropriate weighted average tax rate is 34 percent.

What will be TapDances WACC?(Round your answer to 2 decimal places.)

WACC: ___%

7. Suppose that JB Cos. has a capital structure of 75 percent equity, 25 percent debt, and that its before-tax cost of debt is 11 percent while its cost of equity is 15 percent. Assume the appropriate weighted-average tax rate is 25 percent.

What will be JBs WACC?(Round your answer to 2 decimal places.)

WACC: ___%

8. Suppose that B2B, Inc., has a capital structure of 37 percent equity, 17 percent preferred stock, and 46 percent debt. Assume the before-tax component costs of equity, preferred stock, and debt are 13.5 percent, 9.0 percent, and 8.0 percent, respectively.

What is B2Bs WACC if the firm faces an average tax rate of 30 percent?(Round your answer to 2 decimal places.)

WACC: _____%

9. TAFKAP Industries has 5 million shares of stock outstanding selling at $16 per share, and an issue of $30 million in 8.0 percent annual coupon bonds with a maturity of 20 years, selling at 105 percent of par. Assume TAFKAPs weighted average tax rate is 34 percent and its cost of equity is 12.0 percent.

What is TAFKAPs WACC?(Do not round intermediate calculations. Round your final answer to 2 decimal places.)

WACC: ___%

10. BetterPie Industries has 7 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 20,000 bonds. Assume the common shares are selling for $47 per share, the preferred shares are selling for $24.50 per share, and the bonds are selling for 99 percent of par.

What would be the weights used in the calculation of BetterPies WACC?(Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Equity weight____%

Preferred stock weight ____%

Debt weight____%