Cost of Capital (WACC): 1, Company XYZ's financing plans for next year include the sale of bonds with a 10% coupon rate. The company believes it can sell the bonds yield to maturity (YTM) of 12%. If the company's marginal tax rate is 35%, what's the company's after-tax cost of debt capital? at a price that will provide a 2. Company ABC just financed with a 30-year bond issuing today. The bond sold at $515.16 with semiannual coupon payments. The coupon rate is 6%. Par value is $1000 If ABC's marginal tax rate is 40%, what is the firm's component cost of debt for purpose of calculating its WACC? 3. Firm A will issue new preferred stock at $100 which pays $10 per share each year. The floatation cost is 2.5% of the issuing price. Firm A's marginal tax rate is 40%. What's the after-tax cost of preferred stock? 4. Assume rf-800, rm-13%, and bi 0.7 for a given stock X. Firm X has a tax rate of 40%. What's the after-tax cost of equity for this firm? 5. The current stock price of firm A is $50. The dividend of the stock will grow at 8% annually. Firm A has just paid a dividend of $1.852. Firm A's marginal tax rate is 40%. What's the cost of equity of firm A? 6. Suppose Firm B has its target capital structure as follows. Firm B has a tax rate of 40%. Market Value (Smil.) Instrument debt preferred Stock common equity Cost of capital 45 10% 10.3% 13.4% 53 What's the WACC (Weighted Average Cost of Capital)