I.

With regard to DEBT calculate the contribution to WACC assuming a business has borrowed $180,296 with bank charging an annual interest rate of 8.89%. The Australian company tax rate applies. Round your answer to TWO decimal places ignoring the % sign.

II.

Happy Ltd has $6M of long term debt that was borrowed at a fixed rate of 8.64%pa.

The rate in the market for this type of debt is now 7.49%pa.

Calculate the Market Value of the debt correct to the nearest WHOLE dollar

III.

4,000 Preference Shares were issued 5 years ago at $3 and were paying a fixed annual dividend of 8%.

Preference shares are now trading at $6.72.

Calculate Rp correct to TWO decimal places.

iv.

6,000 Ordinary Shares were issued last year at $3.97. A Dividend of $0.59 was just paid and not expected to change.

These shares are now trading at $4.07.

Calculate the cost of equity correctly to TWO decimal places (do not include % sign).

v.

8,000, 8% Preference Shares were issued in 2012 with a Face Value of $3.39.

These shares are now trading at $5.95.

Calculate the current cost of these shares to the business (correct to TWO decimal places).

Please help , thank you very much