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1.) A bond has a coupon rate of 6 percent and the bond makes semiannual coupon payments. The dollar. 1 answer below » 1.) A bond has a coupon rate of 6 percent and the bond makes semiannual coupon payments. The dollar amount of coupon interest received every six months is a.$60. b.$30. c. $30 plus or minus the prorate portion of the discount or premium that the bond was purchased for. d.None of the above. 2.) Using the WACC in practice: Ronnie’s Comics has found that its cost of common equity capital is 15 percent and its cost of debt capital is 12 percent. If the firm is financed with $250,000,000 of common shares (market value) and $750,000,000 of debt, then what is the after-tax weighted average cost of View complete question » 1.) A bond has a coupon rate of 6 percent and the bond makes semiannual coupon payments. The dollar amount of coupon interest received every six months is a.$60. b.$30. c. $30 plus or minus the prorate portion of the discount or premium that the bond was purchased for. d.None of the above. 2.) Using the WACC in practice: Ronnie’s Comics has found that its cost of common equity capital is 15 percent and its cost of debt capital is 12 percent. If the firm is financed with $250,000,000 of common shares (market value) and $750,000,000 of debt, then what is the after-tax weighted average cost of capital for Ronnie’s if it is subject to a 35 percent marginal tax rate? a.) 6.05% b.) 9.60% c.) 8.75% d.) 13.65% View less » Aug 03 2015 02:27 PM
