Use the following to answer Questions $33-35$

Three interns, Amber, Courtney, and Jasmine, who are currently working at CSD have been provided

the following information. CSD$$s optimal market value capital structure is comprised of $70\%$ equity

and $30\%$ debt. Their marginal tax rate is $40\%.$ The market price of their stock is $$34\mathrm{.}00.$ They just paid

a dividend of $$3\mathrm{.}00$ and the dividend is expected to grow at $5\%$ forever. Their bonds have a market

price of $$960\mathrm{.}00$ and have $20$ years to maturity. They pay semi$-$annually and have a coupon rate of

$6\mathrm{.}00\%$

$34.$ Using the information concerning CSD provided above, Courtney will compute that CSD$$s before$-$

tax cost of debt is $\_\_\_\_\_\%.$

a$.6\mathrm{.}176$

b$.6\mathrm{.}235$

c$.6\mathrm{.}356$

d$.6\mathrm{.}441$

e$.6\mathrm{.}517$

$35.$ Using the information concerning CSD provided above, Jasmine will compute that CSD$$s WACC

is $\_\_\_\_\_\%.$

a$.11\mathrm{.}129$

b$.11\mathrm{.}502$

c$.11\mathrm{.}899$

d$.12\mathrm{.}236$

e$.12\mathrm{.}675$