FIN305 - Quiz Date: First Name: Last Name: Q1: Galvatron Metals has a bond outstanding with a coupon rate of 6.4 percent and semiannual payments. The bond currently sells for $950 and matures in 24 years. The par value is $1,000 and the company's tax rate is 24 percent. What is the company's aftertax cost of debt? (1.2 pts) Q2: Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.82 percent, a par value of $2,000 per bond, matures in 6 years, has a total face value of $5.2 million, and is quoted at 103 percent of face value. The second issue has a coupon rate of 6.59 percent, a par value of $1,000 per bond, matures in 14 years, has a total face value of $9.5 million, and is quoted at 107 percent of face value. Both bonds pay interest semiannually. The company's tax rate is 22 percent. What is the firm's weighted average aftertax cost of debt? (1.2 pts) Q3: Bethesda Water has an issue of preferred stock outstanding with a coupon rate of 6.10 percent that sells for $96.94 per share. If the par value is $100, what is the cost of the company's preferred stock? (1.2 pts) Q4: Kim's Bridal Shoppe has 10,700 shares of common stock outstanding at a price of $41 per share. It also has 240 shares of preferred stock outstanding at a price of $92 per share. There are 570 bonds outstanding that have a coupon rate of 6 percent paid semiannually. The bonds mature in 22 years, have a face value of $1,000, and sell at 104.5 percent of par. What is the capital structure weight of the common stock? (1.2 pts)