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Weekend Warriors, Inc., has 30% debt and 70% equity in its capital structure. The firm's estimated after-tax cost of debt is 7% and its estimated

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Weekend Warriors, Inc., has 30% debt and 70% equity in its capital structure. The firm's estimated after-tax cost of debt is 7% and its estimated cost of equity is 13%. Determine the firm's weighted average cost of capital (WACC). Weekend Warriors' weighted average cost of capital (WACC) is % (Round to two decimal places.) Common stock value-Variable growth Personal Finance Problem Home Place Hotels, Inc., is entering into a 3-year remodeling and expansion project. The construction will have a limiting effect on earings during that time, but when it is complete, it should allow the company to enjoy much improved growth in earnings and dividends. Last year, the company paid a dividend of $3.30. It expects zero growth in the next year. In years 2 and 3,2% growth is expected, and in year 4, 17% growth. In year 5 and thereafter, growth should be a constant 5% per year. What is the maximum price per share that an investor who requires a return of 17% should pay for Home Place Hotels common stock? + ar The maximum price per share that an investor who requires a return of 17% should pay for Home Place Hotels common stock is $ (Round to the nearest cent.) ne Bond interest payments before and after taxes Charter Corp. issued 1,579 debentures with a $1,000 par value and 7% coupon rate. a. What dollar amount of interest per bond can an investor expect to receive each year from Charter? b. What is Charter's total interest expense per year associated with this bond issue? c. Assuming that Charter pays a 21% corporate tax, what is the company's net after-tax interest cost associate with this bond issue? a. The dollar amount of interest per bond an investor can expect to receive each year from Charter is $ (Round to the nearest dollar.) b. Charter's total interest expense per year associated with this bond issue is $. (Round to the nearest dollar.) c. Assuming that Charter is in a 21% corporate tax acket, the company's net after-tax interest cost associated with this bond issue is $. (Round to the nearest dollar.)

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