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Use the following data for securities issued by LuccasenCorp. Bonds: The company issued 240,000 bonds. The bonds have a $1,000 face value with 9.5% coupons

Use the following data for securities issued by LuccasenCorp.

Bonds: The company issued 240,000 bonds. The bonds have a $1,000 face value with 9.5% coupons with annual payments, 20 years to maturity, and currently sell for $940. The marginal tax rate is 4%.

Equity: The company has 9,000,000 shares of (common) stock outstanding, selling for $68 per share. The companys beta is 1.25, the risk free rate is 1%, and the market risk premium is 8%.

What is the total market value of this firm? What percent of the companys financing is debt? What percent of the companys financing is equity? What is the after-tax cost of debt? What is the cost of equity? What is the companys weighted average cost of capital?

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