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please verify whether or not these multiple part answers are correct! its all one question just different parts! Use the following information to answer questions
please verify whether or not these multiple part answers are correct! its all one question just different parts!
Use the following information to answer questions 19 through 24. A corporation has 10,000 bonds outstanding with a 6% annual coupon rate, 8 years to maturity, a $1,000 ace value, and a $1,100 market price. The company's 500,000 shares of common stock sell for $25 per hare, have a beta of 1.5 , the risk-free rate is 4%, and the market return is 12%. 19. What is the market value of equity for this corporation? A. $5 million B. $11 million C $12.5 million D. $4 billion E. none of the above 20. What is the market value of debt for this corporation? A. $10 million (B) $11 million C. \$1 billion D. $1.1 billion E. none of the above 21. What is the cost of equity for this corporation? A. 6% B. 12% (C) 16% D. 22% E. none of the above 22. What is the pre-tax cost of debt for this corporation? A. 2.69% (B) 4.48% C. 6.00% D. 8.97% E. none of the above 23. Assuming a 40% tax rate, what is this corporation's after-tax cost of debt? (A) 2.69% B. 4.48% C. 6.00% D. 8.97% E. none of the above 24. What is the weighted average cost of capital for this company? A. 9.34% (B) 9.77% C. 10.24% D. 10.61% E. none of the above Step by Step Solution
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