Question 6 Question of KADO Corp. capital is structured as follows: 20,000 bonds with an annual coupon of 7% outstanding, par value $1,000 each. Bonds sell for 105% of par and have 5 years to maturity and the company's tox rate is 30% 500,000 shares of common stock outstanding, the common stock currently sells for $55 per share and has a bota of 15, the expected market ratum in 12% and the risk free is 8% 50,000 shares of 12% preferred stock outstanding. Preferred stock currently sells for $150 per share. 1. Calculate the YTM of the bonds 73 Marks) 2. What is the firm's market value capital structure? (2 marks) 3. Calculate the company's weighted average cost of capital7 (4 marks)