4. Heres some info on a company:

Number of issuances

Debt 3000

Preferred stock 15,000

Equity 90,000

Bonds coupon rate: 0% Current stock price: $45 Market risk premium: 8%

Bond par value: $1000 Stock beta: 1.2 Pref. dividend: $8

Bond time to maturity: 5 years Preferred stock price: $60 Tax rate: 30%

Bond price: 73% of par Risk free rate: 6%

What is this companys capital structure weights? What is the WACC?

27. Heres some info for a bond: Price = $800 Annual coupon rate: 6% Coupons per year: 2 Par = $1000 YTM: 10%

What are the current yield and required rate of return for this bond?

A. 6% and 8% B. 6% and 10% C. 3.75% and 10% D. 7.5% and 10% E. 3% and 10%