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Easy Car Corp. is a grocery store located in the southwest. It paid an annual dividend of $10.00 last year to its share holders and

Easy Car Corp. is a grocery store located in the southwest. It paid an annual dividend of $10.00 last year to its share holders and plans to increase the dividend annualy at a rate of 4.0% forever. It currently has 600.00 common shares outstanding. The shares currently sell for $50 each. Easy Car Corp. also has 20,000 semi annual bonds outstanding with coupon rate of 8.9141%, a maturity of 26years, and a par value of 1,000. The bonds currently have a YTM of 10%. The corporate tax rate is 25%

Multi parts

a.What is the cost of debt for easy corp as a percent?

b.How many interest payments are left for the bond of Easy Corp?

c.What is the interest payment per period for the bond?

d. What is the discount rate perperiod to use in pricing the bonds?

e.What is me market value of equity for the calculation of the WACC for Easy?

f.Ehat is the cost of equity foe Easy?

g.Waht is the market value of debt to be used in the calculation of the Wacc for easy?

h.What id the valu of D/V?

i.What is the weighted averge cost of capital (WACC) for Easy Corp?

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