Use the following information to answer questions

19 through 24.A corporation has 10,000 bonds outstanding with a 6% annual coupon rate, 8 years to maturity, a $1,000 face value, and a $900 market price.

The companys 500,000 shares of common stock sell for $10per share, have a beta of 1.5, the risk-free rate is 4%, and the market risk premium is 8%.

19.What is the market value of equity for this corporation?

A.$5 million

B.$11 million

C.$12.5 million

D.$4 billion

E.none of the above

20.

What is the market value of debt for this corporation?

A.$10 million

B.$11 million

C.$1 billion

D.$1.1 billion

E.none of the above

21. What is the cost of equity for this corporation?

A.6%

B.12%

C.16%

D.22%

E.none of the above

22. What is the pre-tax cost of debt for thiscorporation?

A.2.69%

B.4.48%

C.6.00%

D.7.72%

E.none of the above

23. Assuming a 25% tax rate, what is this corporations after-tax cost of debt?

A.2.69%

B.4.48%

C.5.79%

D.8.97%

E.none of the above

24. What is the weighted average cost of capital for this company?

A.9.44%

B.9.77%

C.10.24%

D.13.24%

E.none of the above