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Business, 26.06.2020 17:01 mandi795

KB Corp. has 5.1 million shares of common stock outstanding, 379,000 shares of 3.5 percent preferred stock outstanding and 120,000 4.2 percent semiannual bonds outstanding, par value of $1,000 each. The common stock currently sells for $34 per share and has a beta of 1.05, the preferred stock currently sells for $88 per share, and the bonds have 20-years to maturity and sell for 103 percent of par. The market risk premium is 6 percent, T-bills are yielding 1 .6 percent, and the company’s tax rate is 35 percent. What is the weight of equity in the firm's market value capital structure? Group of answer choices 23.67% 19.78% 52.48% 76.00% 42.12% Flag this Question Question 21 pts What is the afer tax cost of debt? Group of answer choices 1.99% 2.99% 2.58% 4.00% Flag this Question Question 31 pts What is the WACC? Group of answer choices 7.90% 3.5% 7.34% 5.51% 4.45% Flag this Question Question 41 pts WB Industries has a debt-equity ratio of .8. Its WACC is 9.2 percent, and its cost of debt is 4.9 percent. The corporate tax rate is 35 percent. What is the company's cost of equity capital? Group of answer choices 9.21% 10.02% 8.45% 11.67% 14.01% Flag this Question Question 51 pts What is the above company's unlevered cost of equity capital? Group of answer choices 9.21% 15.03% 14.01% 10.89% 11.78% Flag this Question Question 61 pts What would the cost of equity be if the debt-equity ratio were .95? Group of answer choices 12.84% 15.83% 14.58% 22.59% 23.45%

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KB Corp. has 5.1 million shares of common stock outstanding, 379,000 shares of 3.5 percent preferred...
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