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Tonade, Inc, had after tax operating income last year of $1,108,000. Threesources of financing were used by the company: $1 million of mortgage bonds paying

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Tonade, Inc, had after tax operating income last year of $1,108,000. Threesources of financing were used by the company: $1 million of mortgage bonds paying 4 percent interest, 85 million of med bonds paying 6 percent interest, and $10 million in common stock, which was considered to be relatively risky with a risk premium of 8 percent). The rate on long-term treasures is percent. Ignacio, Inc. pays a marginal tax rate of 30 percent. Required: 1. Catulate the after-tax cost of each method of financing. Enter your answers as decimal values rounded to three places. For example, 4.36 would be entered on Mortgage bonds 0.028 Unsecured bonds 0.042 Common stock 0.11 2. Catuite the weighted average cost of capital for Ignacio, Inc. Round intermediate calculations to four decimal places. Round you minat answer to four decimal places before converting to percentage. For example, 06349 would be rounded to.0635 and entered as "6.35" percent X Calculate the total dollar amount of capital employed for Ignacio, in Coate economic value added (EVA) for lonacio, Inc, Forst year. It the IVA is negative, enter your answer on a negative amount Is the company creating or destroying wealth 4. What tonaco, Inc. had common stock which was low risky than other stocks and commanded a risk premium or 5 percent? How wowed that affect the weighted average cost of capital? What is the new eV in your calculations, round weighted average percentage cost of capital to four decimal places. If the EVA is negative, enter your answersa negative amount

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