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Please show me a detailed explanation. Note: Round your answers for each question as instructed. But carry your unrounded values forward to the later parts

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Please show me a detailed explanation.

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 30-year, 4.4% half-yearly bond eight years ago. The bond currently sells for 98.3% 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) Incorrect answer. HINT! The pre-tax cost of debt capital for the firm is the rate of return that's implied by the current market price of the firm's debt relative to the promised futures cash flows (i.e. the yield). Marks for this submission: 0.00/1.25. Suppose the book value of the above Planet Express coupon bond issue is $100.0 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 $53.0 million, and it sells for 54.4% of par. B) Find the yield on Planet Express's zero-coupon bond as an EAR. % (Round to two decimal places) Correct answer, well done. Marks for this submission: 1.25/1.25. 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) Incorrect answer. HINT! In the same way that you calculate the overall WACC as a weighted average of the costs of each of the different types of your firm's capital, you can similarly calculate the overall pre-tax cost of debt for a firm as the weighted average of the pre-tax costs of the different types of a firm's debt (only). Marks for this submission: 0.00/1.25. Assume that Planet Express has common equity with a cost of 14.3% per annum and a market value of $105.0 million. In addition, assume that they have a preference share issue with a cost of 10.2% 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 to two decimal places) Correct answer, well done. Marks for this submission: 1.25/1.25. Check

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