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

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Finance

Part 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 31 percent, what is theaftertax cost of Ying's debt?

Bond
Coupon Rate
Price Quote
Maturity
Face Value
1 5.7%      105      6 years        $ 23,000,000
2 6.9         113      9 years        39,000,000
3 5.7         106      23 years        50,000,000
4 7         120      36 years        56,000,000
Part B
Lannister Manufacturing has a target debt-equity ratio of 0.51.Its cost of equity is 20 percent, and its cost of debt is 10percent. If the tax rate is 33 percent, what is the company'sWACC?
Part C
Fama's Llamas has a weighted average cost of capital of 12percent. The company's cost of equity is 17.5 percent, and itspretax cost of debt is 9 percent. The tax rate is 32 percent. Whatis the company's target debt-equity ratio?

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Part AYing Import has several bond issues outstanding, each makingsemiannual interest payments. The bonds are listed in the followingtable. If the corporate tax rate is 31 percent, what is theaftertax cost of Ying's debt? BondCoupon RatePrice QuoteMaturityFace Value15.7% 105 6 years $ 23,000,000 26.9 113 9 years 39,000,000 35.7 106 23 years 50,000,000 47 120 36 years 56,000,000 Part BLannister Manufacturing has a target debt-equity ratio of 0.51.Its cost of equity is 20 percent, and its cost of debt is 10percent. If the tax rate is 33 percent, what is the company'sWACC?Part CFama's Llamas has a weighted average cost of capital of 12percent. The company's cost of equity is 17.5 percent, and itspretax cost of debt is 9 percent. The tax rate is 32 percent. Whatis the company's target debt-equity ratio?

Bond	Coupon Rate	Price Quote	Maturity	Face Value
1	5.7%	105	6 years	$ 23,000,000
2	6.9	113	9 years	39,000,000
3	5.7	106	23 years	50,000,000
4	7	120	36 years	56,000,000