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Question 1 1 pts Use the following information to answer all 10 questions and determine the company's WACC. Bonds: The company issued 80,000 bonds. The

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Question 1 1 pts Use the following information to answer all 10 questions and determine the company's WACC. Bonds: The company issued 80,000 bonds. The bonds have a $1,000 face value with 7.5% coupons with annual payments, 7 years to maturity, and currently sell for $925. The marginal tax rate is 12%. Common Stock: The company has 500,000 shares of common stock outstanding, selling for $41 per share. The company's beta is 1.25, the risk free rate is 2%, and the market risk premium is 9%. Preferred Stock: The company issued 100,000 shares of preferred stock. Preferred stock pays a dividend of $1 per share, and preferred stock sells for $20 per share. 1. What is the market value of the firm's debt? 80,000 O54,000,000 74,000,000 80,000,000 Question 2 What is the market value of the firm's common stock? 500,000 O2,000,000 O 20,500,000 74,000,000 Question 3 What is the market value of the firm's preferred stock? 2,000,000 20,000,000 20,500,000 74,000,000 1 pts 1 pts Question 4 What is the market value of the firm? O 74,000,000 96,500,000 O 125,000,000 154,500,000 Question 5 What percent of the firm is finance with debt? 74,000,000 77% 50% 22% 1 pts 1 pts Question 6 What percent of the firm is financed with common stock? 77% O 21% O 12% 2% Question 7 What percent of the firm is financed with preferred stock? 77% 21% 12% 2% 1 pts 1 pts Question 8 1 pts What is the cost of debt before taxes? What is the cost of debt after taxes? O 9.38%; 7.25% 8.99%; 10.07% O 6,25%; 4.25% 8.99%; 7.91% Question 9 1 pts What is the cost of common stock? What is the cost of preferred stock? 9.22%; 7.76% 13.25%; 5.00% 11.375 %; 9.98% 5.48%. 3.33% Question 10 What is the weighted average cost of capital? O 7.05% 9.35% 8.97% 10.05% 1 pts

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