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44. Ma, Inc. has a market value capital structure of 30% debt and 70% equity. The tax rate is 40%. The firm's bonds currently trade

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44. Ma, Inc. has a market value capital structure of 30% debt and 70% equity. The tax rate is 40%. The firm's bonds currently trade in the market for $1035.00. These bonds have a face value of $1,000, coupon rate of 8% paid semiannually, and 10 years remaining to maturity. The firm's common stock trades for $20 per share. The firm has just paid a dividend of $2. Future dividends are expected to grow at 2% per year. Based on this information, Ma, Inc.'s WACC is %. 45. Cream and Crimson has a capital structure of 40% debt and 60% equity. The tax rate is 32%. The firm's bonds currently trade in the market for $784. These face value $1,000 bonds have a coupon rate of 8%, paid semiannually, with 7 years to maturity. The firm's common stock trades for $15 per share and the company's beta is 1.28 . The risk-free rate (Rf)=3.2% and the market risk premium (RmRf)=8.1%. Given this information, Cream and Crimson's WACC is %. USE THE INFORMATION BELOW TO ANSWER THE FOLLOWING TWO (2) QUESTIONS Ruff Motors needs to select an assembly line for producing their new SUV. They have two options: - Option A is a highly automated assembly line that has a large up-front cost but low maintenance cost over the years. This option will cost $7 million today with a yearly operating cost of $2 million. The assembly line will last for 5 years and be sold for $5 million in 5 years. - Option B is a cheaper altemative with less technology, a longer life, but higher operating costs. This option will cost $6 million today with an annual operating cost of $2.5 million. This assembly line will last for 8 years and be sold for $1 million in 8 years. The firm's cost of capital is 12%. Assume a tax rate of zero percent. 46. The equivalent annual cost (EAC) for Option A is $ million. 47. The equivalent annual cost (EAC) for Option B is $ million

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