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Masterson Inc. has 3 million shares of common stock outstanding. The current share price is $60 and the book value per share is $10. The

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Masterson Inc. has 3 million shares of common stock outstanding. The current share price is $60 and the book value per share is $10. The company has two bond issues outstanding. The first has a face value of $40 million, has a coupon rate of 4%, and sells for 95% of par. The second has a face value of $80 million and has a coupon rate of 6%., and sells for 105 percent of par. The first issue matures in 10 years and the second in 15 years. What are the capital structure weight of equity using market value? 52.3% 20% 40.4% 64.8% 59.6% Masterson Inc. has two bond issues outstanding. The first has a face value of $40 million, has a coupon rate of 4% and sells for 95% of par. The second has a face value of $80 million, has a coupon rate of 6% and sells for 105 percent of par. The first issue matures in 10 years and the second in 15 years. Both bonds make semiannual payments. The tax rate is 20%. What is Masterson's aftertax cost of debt? .042 .038 .055 .063 .047

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