Jiminys Cricket Farm issued a bond with 30 years to maturity and a semiannual coupon rate of 7 percent 5 years ago. The bond currently sells for 95 percent of its face value. The companys tax rate is 24 percent. The book value of the debt issue is $55 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 9 years left to maturity; the book value of this issue is $40 million, and the bonds sell for 64 percent of par.

a.	What is the companys total book value of debt? (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.)
b.	What is the companys total market value of debt? (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.)
c.	What is your best estimate of the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Red Shoe Co. has concluded that additional equity financing will be needed to expand operations and that the needed funds will be best obtained through a rights offering. It has correctly determined that as a result of the rights offering, the share price will fall from $44 to $40.00 ($44 is the rights-on price; $40.00 is the ex-rights price, also known as the when-issued price). The company is seeking $22 million in additional funds with a per-share subscription price equal to $30.

How many shares are there currently, before the offering? (Assume that the increment to the market value of the equity equals the gross proceeds from the offering.) (Do not round intermediate calculations and round your answer to nearest whole number, e.g., 32.)

Nemesis, Inc., has 135,000 shares of stock outstanding. Each share is worth $59, so the companys market value of equity is $7,965,000. Suppose the firm issues 20,000 new shares at the following prices: $59, $56, and $51.

What will be the ex-rights price and the effect of each of these alternative offering prices on the existing price per share? (Leave no cells blank; if there is no effect select "No change" from the dropdown and enter "0". Round your answers to 2 decimal places, e.g., 32.16.)