A corporation has 10,000 bonds outstanding with a 6% annual coupon rate, 8 years to maturity, a $1,000 face value, and a $1,100 market price. The companys 500,000 shares of common stock sell for $25 per share, have a beta of 1.5, the risk free rate is 4% and the market return is 12%

what is the market value of equity for this corporation?

$5 million $11 million $12.5 million

$4 billion none of the above

what is the market value of debt for this corporation?

$10 million $11 million $1 billion

$1.1 billion none of the above

what is the cost of equity for this corporation?

6%

12% 16% 22% none of the above

what is the pre-tax cost of debt for this corporation?

2.69%

4.48% 6.00% 8.97% none of the above

Assuming a 40% tax rate, what is this corporations after-tax cost of debt?

2.69% 4.48% 6.00% 8.97% none of the above

what is the weighted average cost of capital for this company?

9.34%

9.77% 10.24% 10.61% none of the above