(Weighted average cost of capital) CougarCo is a start-up company. Based on what you calculated on questions 2-4, the company decides to finance itself by issuing 1,000 bonds, 5,000 shares of preferred stock, and 13,000 shares of common stock. Assuming this will represent all of CougarCo's financing, calculate the firm's after-tax WACC (assume a tax rate of 34%). Common stock is selling for $56.23.

(Weighted average cost of capital) Toy Masters Inc. has a target capital structure of 45% debt, 35% preferred stock, and 20% Common Stock. The before-tax costs of debt, preferred stock, and common stock are 7%, 9%, and 15%, respectively. What is Toy Masters' after-tax WACC? Assume a 40% tax rate.

(Weighted average cost of capital) AnimalKing has a capital structure with 30% debt and 70% common stock. A debt issue of $1,000 face value with 12% coupon bonds, maturing in 15 years paying semiannual interest, will sell for $1,122.35. The cost of equity for the company is based on the CAPM and the following information: beta of 1.1, risk free treasury rate of 3% and market rate of 9%. What is AnimalKing's cost of capital given a 20% tax rate?