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The UVW Corporation has three bond issuances outstanding. Bond 1 is an annual bond with a $1,000 par value, $80 coupon payments, maturing in 8

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The UVW Corporation has three bond issuances outstanding. Bond 1 is an annual bond with a $1,000 par value, $80 coupon payments, maturing in 8 years, and trades today at $1,107.60 with 120,000 bonds outstanding. Bond 2 is a semi-annual bond with a $10,000 par value. $295.00 coupon payments, maturing in 8 years, and trades today at $8,776.51 with 18,000 bonds outstanding. Bond 3 is a quarterly bond with a $1.000 par value, $15.50 coupon payments, maturing in 8 years and trades at $1.038.48 with 80,000 bonds outstanding. UVW has 1,400,000 shares of preferred stock outstanding paying dividend of $6.30 with a share price of $51.50. UVW has 51 million shares of common stock outstanding with a reported beta of 1.30 that is trading at $18.25 and pays a dividend of $0.80 annually and expected sustained dividend growth of 3.70% for the foreseeable future. The expected return on the market is 9.50% and the risk-free rate is 3.50%. When measuring the expected return on equity. you decide to weight the return generated by CAPM at 70% and the Continuous Dividend Growth (Gordon Growth) model at 30%. The UVW Corporation is taxed at the 21% level. What is the yield-to-maturity of Bond 2? Select one a less than 3% b. Between 3% and 4% c. Between 4% and 5% d. Between 5% and 6% e Greater than 6% What is the market value of debt for Bond 3? Select one: a. Less than $10,000,000 b. Between $10,000,000 and $30,000,000 c. Between $30,000,000 and $60,000,000 O d. Between $60,000,000 and $100,000,000 e. Greater than $100,000,000 What is the cost of Debt for the UVW corporation (do not round until the final answer)? Select one: a. Less than 4.5% b. Between 4.5% and 5.5% O c. Between 5.5% and 6.5% O d. Between 6.5% and 7.5% e. Greater than 7.5% What is the cost of Equity for the UVW Corporation (do not round until the final answer)? Select one: O a. Less than 8% b. Between 8% and 9% c. Between 9% and 10% O d. Between 10% and 11% e. Greater than 11% What is UVW Corporation's Weight of Preferred (do not round until the final answer)? Select one: O a. Less than 6% O b. Between 6% and 10% O c. Between 10% and 14% d. Between 14% and 18% o e. Greater than 18% What is the Cost of Equity for the UVW Corporation as calculated by the Continuous Dividend Growth (Gordon Growth) model (do not round until the final answer)? Select one: a. Less than 4% b. Between 4% and 7% c. Between 7% and 10% d. Between 10% and 13% e. Greater than 13% What is the UVW Corporation's Weight of Debt (do not round until the final answer)? Select one: a. Less than 12% O b. Between 12% and 24% c. Between 24% and 32% d. Between 32% and 40% e. Greater than 40% What is the weighted Average Cost of Capital for the UVW Corporation (do not round until the final answer)? Select one: O a. Less than 8% O b. Between 8% and 9% c. Between 9% and 10% d. Between 10% and 11% e Greater than 11%

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