The WACC for a firm is 19.75 percent. You know that the firm is financed with $75 million of equity and $25 million of debt. The cost of debt capital is 7 percent. What is the cost of equity for the firm? a. 19.75% b. 24.00% c. 32.50% d. 58.00% SHOW YOUR DETAILED SOLUTION. USE EXCEL PackMan Corporation has bonds outstanding with nine years to maturity and are currently priced at $754.08. If the bonds have a coupon rate of 7.25 percent, then what is the after-tax cost of debt for Beckham if its marginal tax rate is 30 percent? Complete the calculation as is done on Wall Street. a. 7.050% b. 8.225% c. 1.750% d. 12.095% SHOW YOUR DETAILED SOLUTION. USE EXCEL Poly's Parrot Shops has found that its cost of common equity capital is 17 percent. It has 7-year maturity bonds outstanding with a price of $767.03 that have a coupon rate of 7 percent. If the firm is financed with $120,000,000 of common shares (market value) and $80,000,000 of debt, then what is the after-tax weighted average cost of capital for Poly's if it is subject to a 35 percent marginal tax rate? a. 10.20% b. 11.76% c. 11.88% d. 13.32% SHOW YOUR DETAILED SOLUTION. USE EXCEL Barrington Fertilizers. Inc, exports made sale worth of C$1. 150,000 with payment due in 90 days. Banker gave a forward rate of $10177/C$, by using it gain additional $8, 433.25 over what it would have gotten if it had sold the Canadian dollars in spot market 90 days later. The spot rate at the time of payment received is: SHOW YOUR DETAILED SOLUTION. USE EXCEL