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Lizzin Corp. hires you as a consultant to learn more about its weighted average cost of capital (WACC). Here is the information you have about

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Lizzin Corp. hires you as a consultant to learn more about its weighted average cost of capital (WACC). Here is the information you have about the company: Table 1. Three bond issues outstanding Bond Yield to Market price Coupon Time to Number of bonds maturity (YTM) (per bond) rate maturity (years) outstanding 1 ? $896.57 6.1% 19 250,000 2 5.15% ? 5.4% 8 350,000 3 5.94% $1,046.58 6.3% 25 400,000 The corporate tax rate is 36.1%. The stock price of the company is $54.30, and the number of shares outstanding is 15,500,000. a. The company's stock has a beta of 1.23. If the risk-free rate is 2.7% and the expected return on the market is 12.4%, what is the company's cost of equity? Please show your calculations. b. The company has three bond issues. All issues make semiannual payments. Their face value is $1,000. Calculate the YTM for Bond 1 and the market price for Bond 2. Please show your calculations. c. What is the company's before-tax cost of debt? Please show your calculations. d. What is the WACC? Please show your calculations

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