Willerton Industries Inc. has the following balances in its capital accounts as of 12/31/X3:

Long-term debt $75000000

Preferred stock 20000000

Common stock 40000000

Paid in excess 20000000

Retained earnings 32500000

Calculate Willerton's capital structure based on book values. Round the values to the nearest dollar and the weights to two decimal places of percentage.

Value Weight

Debt $ %

Preferred stock %

Equity %

Total %

2 Asbury Corp. issued 30-year bonds 11 years ago with a coupon rate of 9.5%. Those bonds are now selling to yield 7%. The firm also issued some 20-year bonds 2 years ago with an 7.8% coupon rate. The two bond issues are rated equally by Standard and Poors and Moody's. Asbury's marginal tax rate is 30%. Assume face value of the bonds is $1,000. Assume that the coupon payments are semi-annual.

a) What is Asbury's after-tax cost of debt? Round the answer to two decimal places.%

b)What is the current selling price of the 20-year bonds? Round the answer to the nearest cent.$