A. Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed...

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Finance

A.
Ying Import has several bond issues outstanding, each makingsemiannual interest payments. The bonds are listed in the followingtable. If the corporate tax rate is 33 percent, what is theaftertax cost of Ying's debt?

Bond
Coupon Rate
Price Quote
Maturity
Face Value
1 5.9%      110      8 years        $ 23,000,000
2 7.4         118      11 years        36,000,000
3 6.5         112      26 years        49,000,000
4 7.5         123      40 years        62,000,000
B.
Lannister Manufacturing has a target debt-equity ratio of 0.58.Its cost of equity is 17 percent, and its cost of debt is 9percent. If the tax rate is 32 percent, what is the company'sWACC?
C.
Fama's Llamas has a weighted average cost of capital of 13percent. The company's cost of equity is 17 percent, and its pretaxcost of debt is 7.5 percent. The tax rate is 31 percent. What isthe company's target debt-equity ratio?

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A.Ying Import has several bond issues outstanding, each makingsemiannual interest payments. The bonds are listed in the followingtable. If the corporate tax rate is 33 percent, what is theaftertax cost of Ying's debt? BondCoupon RatePrice QuoteMaturityFace Value15.9% 110 8 years $ 23,000,000 27.4 118 11 years 36,000,000 36.5 112 26 years 49,000,000 47.5 123 40 years 62,000,000 B.Lannister Manufacturing has a target debt-equity ratio of 0.58.Its cost of equity is 17 percent, and its cost of debt is 9percent. If the tax rate is 32 percent, what is the company'sWACC?C.Fama's Llamas has a weighted average cost of capital of 13percent. The company's cost of equity is 17 percent, and its pretaxcost of debt is 7.5 percent. The tax rate is 31 percent. What isthe company's target debt-equity ratio?

Bond	Coupon Rate	Price Quote	Maturity	Face Value
1	5.9%	110	8 years	$ 23,000,000
2	7.4	118	11 years	36,000,000
3	6.5	112	26 years	49,000,000
4	7.5	123	40 years	62,000,000