Part 1 question d

Student's Name Part1 Answer 3 outof5in Bullet Points (10% ofthe grade) 1. ADDRESS (in bullet form in the order stated of question i through i) () THE MAIN LITIGATION ISSUES i) COURT'S DECISION/OPINION, AND ili) THE SIGNIFICANCE FOR CORPORATE GOVERNANCE IN THE FOLLOWING COURT C A.. SMITH V. VAN GORKOM B. REVLON v. PANTRY PRIDE C. UNOCAL v. MESA, D. PARAMOUNT V. TIME, AND E. PARAMOUNT v. QVC NETWORK Part II: Answer all on this Sheet (30%) ABC Incorporated shares are currently trading for $32 per share. T shares outstanding. In addition, the market value of the firm's outst The 10-year Treasury bond rate is 6.25%. ABC has an outstandin earned an AAA rating from the major credit rating agencies. The cur corporate bonds is 6.45%. The historical risk premium for stocks return is 5.5 percentage points. The firm's beta is estimated to be 1.1 including federal, state, and local taxes is 40%. (Worth 10%) a. What is the cost of equity? b. What is the after-tax cost of debt? c. What is the weighted cost of capital? Acquiring Company is considering the acquisition of Target Com transaction in which Target Company would receive $50.00 for stock. The Acquiring Company does not expect any change in its the merger. (Worth 2096)