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The Tunney Inc. currently has a bond with 10 years to mature. It pays 10% coupon compounded semiannually. The current price of the bond is

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The Tunney Inc. currently has a bond with 10 years to mature. It pays 10% coupon compounded semiannually. The current price of the bond is $980. The corporate tax rate is 20%. The Tunney Inc.'s common stock has beta of 1.3, the risk free rate is 3.4% and the required rate of return on the Market is 12%, Also Tunney has 40% debt, and 60% common equity in its capital, Find after tax cost of debt 826% 413% 10% QUESTION 3 See Question 2 obove for details Find cost of equity 10.05%14.6%19.0% QUESTION 4 See Question 2 above for details Find weighted average of cost of capital. 12.05%14.6%19.0%

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