please use finance formulas do not use the EXCEL form. thank you

. Problem #3 (16 marks) Below is the balance sheet (book value) for JP Products Inc. (JPP). The preferred stock currently sells for $15 per share and the common stock for $20 per share. There are 1,000 common shares and 100 preferred shares outstanding. Bonds are currently selling for $935.80 and have 10 year to maturity. # $1,000 - Assets -Cash & short term securities - Accounts Receivable $3,000 Liabilities and Owners Equity Bonds, coupon =8%, $10,000 paid semi-annually Preferred stock (par $2,000 value $20 per share) Common Stock $10,000 Retained earnings $10,000 Totale $32,000 - Inventories Plant & equipment - Totale $7,000 $21,000 $32,000 . Preferred shares pay a 7.5% dividend. The beta of the common stock is 1.5, the market risk premium is 7%, and the risk free rate is 4%. The company's tax rate is 40% a) What is the JPP's before tax cost of debt? (6 marks) use financial formula, not form b) What is JPP's cost of preferred shares? (2 marks) c) What is JPP's cost of common equity? (2 marks) d) What are the capital structure (weights) of JPP based on market values? (4 marks) e) What is JPP's weighted average cost of capital? (2 marks) Problem #5 (10 marks) Super Bikes (SB) Inc. is a company which manufactures bicycles and distributes to retailers across Canada. Its line of business is generally considered quite stable and low risk. SB Inc. would like to invest in a new division to manufacture skateboards. 4 Currently, SB Inc. has a cost of debt (before tax) of 5% and its stock has a beta of 0.6. The firm's debt-equity ratio is 0.7. The firm has identified another company (Free Wheels Inc) whose main business is similar to this project. Free Wheels Inc. has a cost of debt (before tax) of 8%, a beta of 2.5, tax rate of 45% and a debt-equity ratio of 0.4.4 Problem #1 (6 marks) Felix Furniture has the following bond issue outstanding, each making semiannual interest payments. If the corporate tax rate is 35%, what is the after-tax cost of the company's debt? -Bonde Coupon Rate Price Quote Maturity -1e 6.80% 97.25 15 years