Question 1: Matoika Mfg.has a 38% tax rate. They issued a 25-year, 12% semiannual bond 3 years ago. The bond currently sells for 94%. The book value of the debt issue is $40 million. There is a second debt issue on the market, a zero coupon bond with 14 years left to maturity; the book value of this issue is $45 million and the bonds sell for 53% of par. What is the total book value of the debt? $85,000,000 What is the companys total market value of debt? $61,450,000 What is your best estimate of their after-tax cost of debt? 5.98% Question 2: A company has a target debtequity ratio of 0.83. Its WACC is 9.6%, and the tax rate is 35%. a. If the companys cost of equity is 14%, what is its pre-tax cost of debt? 6.61% b. If instead you know that the after-tax cost of debt is 6.8%, what is the cost of equity? 11.92% Question 3: Assume a company has 8.9 million shares of common stock outstanding, 330,000 shares of 5% $100 par value preferred stock outstanding, and 151,000 7.50% semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $37 per share and has a beta of 1.45, the preferred stock currently sells for $93 per share, and the bonds have 15 years to maturity and sell for 118% of par. The market risk premium is 7.7%, T-bills are yielding 4%, and the companys tax rate is 40%. What is the firms market value capital structure? Debt $178,180,000 Equity $329,300,000 Pref Stk $30,690,000 What discount rate should the firm use to discount a proposed investments cash flows? 10.718% Question 4: A company with a valuation of $520,000 can borrow at 4%. It has no debt, and its cost of equity is 10%. If the applicable corporate tax rate is 35%, what is EBIT for the company? $80,000 What will the value be if the company borrows $122,000 and uses the proceeds to repurchase shares? $562,700 Question 5: Assume a company uses a residual dividend policy. A debt-equity ratio of 2.0 is considered optimal. Earnings for the period just ended were $3,400, and a dividend of $820 was declared. How much in new debt was borrowed? $5,160 What were the total capital outlays? $7,740

There is an answer there right next to the ? sign already please help me understand how to get there with some work.