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7 / SodaFizz has debt outstanding that has a market value of $ 3 million. The company's stock has a book value of $ 2

7/ SodaFizz has debt outstanding that has a market value of $3 million. The company's stock has a book value of $2 million and a market value of $6 million. What are the weights in SodaFizz's capital structure?
8/ The yield to maturity on SodaFizz's debt is 7.2%. If the company's marginal tax rate is 21%, what is SodaFizz's effective cost of debt?
9/ SodaFizz paid a dividend of $2 per share last year; its dividend has been growing at a rate of 2% per year, and that growth rate is expected to continue into the future. The stock of SodaFizz is currently trading at $19.50 per share According to the constant dividend growth model, what is the cost of equity capital for SodaFizz?
10/ Given the answers to Problems 7,8, and 9, what is SodaFizz's WACC when the constant dividend growth model is used to calculate its equity cost of capital?

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