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U A corporation has 10,000 bonds outstanding with a 6% annuai coupon rate, 8 years to maturity, a $1,000 face value, and a $1,100 market

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U A corporation has 10,000 bonds outstanding with a 6% annuai coupon rate, 8 years to maturity, a $1,000 face value, and a $1,100 market price. The company's 500,000 shares of common stock sell for $25 per share, have a beta of 1.5, the risk-free rate is 4%, and the market return is 12%. What is the market value of equity for this corporation? A. $5 million B. S11 million C. S12.5 million DS4 billion E none of the above 6) What is the market value of debt for this corporation? A. S10 million BS11 million C. $1 billion D. $1.1 billion E none of the above What is the cost of equity for this corporation? A6% B. 12% C. 16% D 22% E none of the above What is the pre-tax cost of debt for this corporation? A. 2.69% B 4.48% c. 6.00% D. 8.97% E. none of the above e. Assuming a 40% tax rate, what is this corporation's after-tax cost of debt? A. 2.69% B. 4.48% C. 6.00% D. 8.97% E none of the above What is the weighted average cost of capital for this company? A 9.34% B 9.77% C. 10.24% D. 10.61% E, none of the above

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