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please show how to work, Thank You! Question 1 5 pts A firm $70 of debt and $30 of equity in its capital structure. The
please show how to work, Thank You!
Question 1 5 pts A firm $70 of debt and $30 of equity in its capital structure. The beta of the firm's equity is 0.55 and the market risk premium is 12%. The debt of the firm is in the form of semi-annual public market bonds, with face value of $1000, maturing in 10-years. The coupon rate for this debt is 10% and it is currently traded at $970 in the market. Risk free rate is 5% and tax rate is 40% What is the firm's cost of equity? 0 11.60% O 12.40% O 10.15% 09.17% O 8.20% Question 2 5 pts For the same firm: What is the firm's cost of debt? 10.49% 8.20% 7.16% 5.25% 3.12% Question 3 5 pts For the same firm, What is the Weighted Average Cost of Capital (WACC)? O 7.88% 9.19% 10.17% 12.55% O 15.15%Step by Step Solution
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