4) Corporation A has the following balance sheet and an equity market-to-book ratio of 3.53. Assuming the market value of debt equals its book value, what weight for Debt should Corporation A use in its WACC? Assets Liabilities 10000 Debt 4000 Equity 6000

a) Corporation A has the following balance sheet and an equity market-to-book ratio of 2.95. Assuming the market value of debt equals its book value, what weight for Common Equity should Corporation A use in its WACC? Assets Liabilities 10000 Debt 4000 Equity 6000

b)Company A has a $10 million debt issue outstanding, with a 6% coupon rate. The debt has semiannual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 95% of par value. What is Company's A pretax cost of debt?

c) Company A has a $10 million debt issue outstanding, with a 8% coupon rate. The debt has semiannual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 95% of par value. If the company has a 47% tax rate What is Company's A post tax cost of debt?