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no 32!!! with workings MILIJU, B) 7.1% ) 10.6% D) 10% -(75T (-401 +(59). X .) +(55'.X15%) 750, 90(34) doslid) + (0.55 X (57) :

no 32!!! with workings image text in transcribed
MILIJU, B) 7.1% ) 10.6% D) 10% -(75T (-401 +(59). X .) +(55'.X15%) 750, 90(34) doslid) + (0.55 X (57) : 1:07 +0.35/+3.251 - 10.6 31) Kokapeli, Inc. has a target capital structure of 40% debt and 60% common equity, and has a 40% marginal tax rate. If the firm's yield to maturity on bonds is 7.5% and investors require a 15% return on the firm's common stock, what is the firm's weighted average cost of capital? A) 7.20% B) 0.80% C) 12.00% D) 12.25% 32) PrimaCare has a capital structure that consists of $7 million of debt, $2 million of preferred stock, and $11 million of common equity, based upon current market values. The firm's yield to maturity on its bonds is 7.4%, and investors require an 8% return on the firm's preferred and a 14% return on PrimaCare's common stock. If the tax rate is 35%, what is PrimaCare's WACC? A) 7.21% B) 8.12% C) 10.18% D) 12.25% 33) A corporate bond has a face value of $1,000 and a coupon rate of 5%. The bond matures in 15 years and has a current market price of $925. If the corporation sells more bonds, it will incur flotation costs of $25 per bond. If the corporate tax rate is 35%, what is the after-tax cost of debt capital? A) 3.74% 925-25-900 B) 4.45% DMT - low to 05:50 15.29% lirin xl-925) 1000

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