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Planet Express has issued a 20 -year, 4.6% half-yearly bond eight years ago. The bond currently sells for 96.8% of its face value. The firm's

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Planet Express has issued a 20 -year, 4.6% half-yearly bond eight years ago. The bond currently sells for 96.8% of its face value. The firm's tax rate is 32.5%. A) Using the above information only, find Planet Express's pre-tax cost of debt? % per annum compounded annually (Round your answer 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 eleven years left to maturity; the book value of this issue is $60.0 million, and it sells for 42.1% of par. B) Find the yield on Planet Express's zero-coupon bond as an EAR. (Round your answer 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 your answer to two decimal places) Assume that Planet Express has common equity with a cost of 15.3% per annum and a market value of $110.0 million. In addition, assume that they have a preference share issue with a cost of 11.0% per annum and that trades for a market value of $21.0 million. D) Find the WACC for Planet Express (assuming they operate under a classical taxation system). % (Round your answer to two decimal places)

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