Equity Information

50 million shares $80 per share
Beta = 1.15
Market risk premium = 9%
Risk-free rate = 5%
Debt Information $1 billion in outstanding debt (face value)
Current price = 1100
Coupon rate = 9%, semiannual coupons 15 years to maturity
Tax rate = 40%

a. What is the cost of debt?
b. What is the cost of equity (using the CAPM)?
c. What is the AFTER-TAX cost of debt?
d. What are the capital structure weights?
e. Compute the Weighted Average Cost of Capital (the WACC) cost of debt?

Select the word from the list that best fits the definition sometimes

You park your car on sixth street and walk over to the quad for lunch. while crossing wright street, you are hit by a bicyclist and knocked to the ground. you hit your head so hard you are knocked out. when you wake up, the person who hit you is gone. you incur $45,000 in medical bills. the person who hit you would be liable for $150,000 in damages if you could find them. your policy will pay:

Sri lanka is one of the major tea producing nations in the world. a substantial portion of the country's annual tea production gets exported to various countries, including the united arab emirates, russia, and other countries in the middle east. given the success in these countries, sri lanka decided to foray into the asian market. research evidence indicated that people in myanmar are major consumers of tea and that there is a high demand for tea in that country. this convinced industry experts in sri lanka that exporting to myanmar was a good idea. even though sri lankan tea was priced competitively, sales in myanmar turned out to be far lower than expected. which of the following, if true, could explain this outcome? a. myanmar exported a substantial amount of its annual tea production that year. b. the tea exported from sri lanka is of the highest quality. c. the myanmar government hiked the minimum wage for labor. d. people in myanmar are willing to pay more for their domestic tea brands than for foreign brands. e. sri lankan tea exports to other asian countries like india and china have also not been very successful.