Wal-Mart plans to open a new store near JU. Wal-Mart is going to finance via bond market and stock market. Total capital required is 10 million dollars. 4 million dollars are going to be borrowed from the bond market. This 4% annual coupon bond is traded in the market for $1050 and is going to be matured in 8 years. There is no flotation fee. Tax rate is 40%. Wal-Mart plans to pay dividend of $2 per shafe next year. The dividend is expected to grow at the rate of 6% each year. The stock is traded at $120 per share. The flotation fee is 5%. 40. What is the percentage of capital financed from the bond market (weight of debt)? a. A) 100% b. B) 60% c. C) 40% d. D) 30% 41. How much is the after tax cost of debt of Wal-Mart? a. A) 2.13% b. B) 1.65% c. C) 2.38% d. D) 1.97% 42. How much is the cost of equity (stock)? The flotation fee is 5%. a. 8.91% b. 7.75% c. 7.82% d. 8.46 % 43. How much is the WACC? a. 5.44% b. 3.98% c. 4.11% d 4.49% des