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5. The company is in the 28 percent marginal tax bracket. What is the after-tax cost of debt for the firm? 7. A company has

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5. The company is in the 28 percent marginal tax bracket. What is the after-tax cost of debt for the firm? 7. A company has outstanding bonds with a YTM of 8%, a required return on equity of 10%, a marginal tax rate of 21% and a target capital structure consisting of 2/3 debt and 1/3 equity. What is the weighted average cost of capital for this firm? 4. A company has an outstanding 20-year bond with a coupon of 8% and a price of $1100. Please calculate the YTM of the bond assuming that the coupon is paid semi-annually and the par value is $1000. 8. Please calculate the WACC given the following information. (2 pts) Corporate tax rate 21% Market value Weight Bonds $ 1,000,000 Stocks 600,000 Loans s 400,000 Before-tax required return Bonds 4% Stocks 8% Loans 5% WACC

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