Tax rate 30% Riskfree rate 1.6% Market rate 7.8% Use the chart below and the yields to maturity chart in the slides to answer Questions 1 to 7. 1234 Loan Common stock Amount $10,000,000 Beta 1.10 Interest rate 0.045 Shares outstanding 10,000,000 Bond issue Price per share $5.00 30 yr. AAA rated Number issued 21,000 Price per bond $1,100 What is the yield to maturity on the bond issue? What percentages do the loan and bond issue contribute to the firm's total debt? Find the after-tax weighted average cost of debt. What is cost of common stock? 5. What is the market value of the common stock? 6. 7. What are the percentages of debt and equity in the firm's capital structure? What is the firm's weighted average cost of capital? Use the chart below and the yields to maturity chart in the slides to answer Questions 8 to 14. Loan Common stock Amount $5,000,000 Beta 1.40 Interest rate 0.05 Shares outstanding 2,000,000 Bond issue Price per share $9.45 7 yr. AAA rated Number issued 7,500 Price per bond $1,010 8. 9. 10. What is the yield to maturity on the bond issue? What percentages do the loan and bond issue contribute to the firm's total debt? Find the after-tax weighted average cost of debt. 11. What is cost of common stock? 12. What is the market value of the common stock? 13. 14. What are the percentages of debt and equity in the firm's capital structure? What is the firm's weighted average cost of capital?