NEC manufacturing has 4 million shares of common stock outstanding. The current stock price is $150, and the book value per share is $80. NEC manufacturing also has two bond issues outstanding. The first bond issue has a face value of $80 million and a coupon rate of 4% and sells for 102% of par. The second issue has a face value of $50 million and a coupon rate of 6% and sells for 90% of par. The first issue matures in 14 years, the second in 22 years.

1. What is the NECs capital structure of weight for debt on book value basis? 2. What is the NECs capital structure weight for debt on a market value basis? 3. Suppose the most recent dividend was $4 and the dividend growth rate is 8%. What is the companys cost of equity? 4. Assume that the overall cost of debt is the weighted average implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 40 percent. What is the companys average cost of debt? 5. Whats the companys WACC?