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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

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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. $10,000,000 0.045 Loan Amount Interest rate Bond issue 30 yr. AAA rated Number issued Price per bond Common stock Beta Shares outstanding Price per share 1.10 10,000,000 S5.00 21,000 $1,100 1 2 3. 4. S. 6. 7 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? What is the market value of the common stock? What are the percentages of debt and equity in the firm's capital structure? What is the firm's weighted average cost of capital

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