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Time left 0:29:47 on 1 red Hout of A company's bond has a par value of $1000 and pays a coupon rate of 4%. The
Time left 0:29:47 on 1 red Hout of A company's bond has a par value of $1000 and pays a coupon rate of 4%. The current market price of the bond is $890. The bond matures in 8 years. The marginal tax rate is equal to 15%. The required rate of return on the company's shares is 11%. The company is working on a project requiring a total funding of 500,000 KD. Debt funding is estimated to be 100,000 KD and the rest in shares. Answer the following questions: a. Calculate the debt weight wo on Wo b. Calculate the stock weight Ws Ws c. Calculate the coupon payment. Coupon payment = $ d. Calculate the cost of debt rd. Note: Use two decimal places (example: 0.05,0.12, 0.09....) ro e. Calculate the WACC of the project. Note: Include all decimal places WACC =
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