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Those answer all the questions. New Business Ventures, Inc., has an outstanding perpetual bond with a coupon rate of 8 percent that can be called

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New Business Ventures, Inc., has an outstanding perpetual bond with a coupon rate of 8 percent that can be called in one year. The bond makes annual coupon payments and has a par value of $1,000. The call premium is set at $175 over par value. There is a 60 percent chance that the interest rate in one year will be 10 percent, and a 40 percent chance that the interest rate will be 6 percent. If the current interest rate is 8 percent, what is the current market price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current market priceWeston Industries has a debt-equity ratio of .7. Its WACC is 9.3 percent, and its cost of debt is 6.4 percent. The corporate tax rate is 24 percent. b. c-1. c-2. c-3. What is the company's cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What is the company's unlevered cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What would the cost of equity be if the debtequity ratio were 2? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What would the cost of equity be if the debt-equity ratio were 1.0? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What would the cost of equity be if the debt-equity ratio were zero? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 9 Answer is complete but not entirely correct. Cost of equity . % Unlevered cost of 0 equit ' / Cost of equity . % E Cost of equity 13.116 E Cost of equity 10.32 9

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