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i have the answers but i need the breakdown of how to do 11-13 by hand 11) Jack's Construction Co. has 80,000 bonds outstanding that

i have the answers but i need the breakdown of how to do 11-13 by hand image text in transcribed
11) Jack's Construction Co. has 80,000 bonds outstanding that are selling at par value. Bonds with similar characteristics are yielding 8.6 percent. The company also has 4 million shares of common stock outstanding. The stock has a beta of 1.1 and sells for $40 a share. The U.S. Treasury bill is yielding 4 percent and the market risk premium is 8 percent. Jack's tax rate is 34 percent. What is Jack's weighted average cost of capital? 11) A) 11.39% B) 11.47% C) 10.10% D 10.43% E) 10.65% 12) Your estimate of the market risk premium is 7%. The risk-free rate of return is 4% and General Motors has a beta of 1.6. What is General Motors' cost of equity capital? 12) A) 14.4% B) 15.2% C) 16.0% D) 13.7% 13) A firm has a capital structure with $50 million in equity and $100 million of debt. The cost of equity capital is 11% and the pretax cost of debt is 5%. If the marginal tax rate of the firm is 40%, compute the weighted average cost of capital of the firm. 13) A5.67% B) 6.5% C) 4.5%

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