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thumbs up will be given Firm X has 1 million shares of common stock @ $10 par value. The shares are currently trading at $50

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Firm X has 1 million shares of common stock @ $10 par value. The shares are currently trading at $50 per share. Current risk free rate is 2%, market risk premium is 7% and the company has a beta coefficient of 2.0. During last year, it issued 10,000 bonds with face value $1,000 paying 10% coupon annually maturing in 20 years. Bond Yield is 9%. The bonds are currently trading at $1100. The company's tax rate is 20%. Calculate the weighted average cost of capital. a. What is Firm X's after-tax cost of debt? % (2 Pts) b. What is Firm X's cost of equity? %. (2 Pts) %. (2 Pts) What is the weight of equity? to nearest one decima What is Firm X's debt ratio? %. (2 Pts) d. %. (2 Pts) What is Firm X's WACC? to nearest two decimals? e

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