1. Suppose that JB Cos. has a capital structure of 75 percent equity, 25 percent debt, and that its before-tax cost of debt is 11 percent while its cost of equity is 15 percent. Assume the appropriate weighted-average tax rate is 25 percent.

What will be JBs WACC?

WACC: ____%

2. Suppose that B2B, Inc., has a capital structure of 37 percent equity, 17 percent preferred stock, and 46 percent debt. Assume the before-tax component costs of equity, preferred stock, and debt are 13.5 percent, 9.0 percent, and 8.0 percent, respectively.

What is B2Bs WACC if the firm faces an average tax rate of 30 percent?(Round your answer to 2 decimal places.)

WACC: ____%

3. TAFKAP Industries has 5 million shares of stock outstanding selling at $16 per share, and an issue of $30 million in 8.0 percent annual coupon bonds with a maturity of 20 years, selling at 105 percent of par. Assume TAFKAPs weighted average tax rate is 34 percent and its cost of equity is 12.0 percent.

What is TAFKAPs WACC?(Do not round intermediate calculations. Round your final answer to 2 decimal places.)

WACC: ____%