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Note: Round your answers for each question as instructed. But carry your unrounded values forward to the later parts of the question where required. Planet

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Note: Round your answers for each question as instructed. But carry your unrounded values forward to the later parts of the question where required. Planet Express has issued a 25-year, 5.8% half-yearly bond nine years ago. The bond currently sells for 98.0% of its face value. The firm's tax rate is 30.0%. A) Using the above information only, find Planet Express's pre-tax cost of debt? % per annum compounded annually (Round to two decimal places) Suppose the book value of the above Planet Express coupon bond issue is $85.0 million. In addition, the company has a second debt issue, a zero-coupon bond with eight years left to maturity; the book value of this issue is $51.0 million, and it sells for 50.7% of par. B) Find the yield on Planet Express's zero-coupon bond as an EAR. % (Round to two decimal places) C) Given all of the above information, what is the overall pre-tax cost of debt for Planet Express now? % (Round to two decimal places) Assume that Planet Express has common equity with a cost of 15.4% per annum and a market value of $115.0 million. In addition, assume that they have a preference share issue with a cost of 11.7% per annum and that trades for a market value of $17.0 million D) Find the WACC for Planet Express (assuming they operate under a classical taxation system). % (Round to two decimal places)

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