FNBSLW 344-Waller, Inc., is trying to determine its cost of debt
1.) Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 8 years to maturity with a current price of $1042. The issue makes semiannual payments and has coupon rate of 8 percent. If the tax rate is 0.23, what is the pretaxcost of debt? Enter the answer with 4 decimals (e.g. 0.0123)2.) Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 20 years to maturity with a current price of $854. The issue makes semiannual payments and has coupon rate of 5 percent. If the tax rate is 0.35, what is the aftertax cost of debt? Enter the answer with 4 decimals (e.g. 0.0123)3.) Filer Manufacturing has 4500000 shares of common stock outstanding. The current share price is $25.38, and the book value per share is $6.01. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $80000000, has a 0.07 coupon, matures in 22 years and sells for 96 percent of par. The second issue has a face value of $77000000, has a 0.06 coupon, matures in 13 years, and sells for 94 percent of par.The most recent dividend was $2.89 and the dividend growth rate is 0.07. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 0.24.What is Filer’s cost of equity? Enter the answer with 4 decimals (e.g. 0.2345)4.) Filer Manufacturing has 9400000 shares of common stock outstanding. The current share price is $72.06, and the book value per share is $7.09. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $43000000, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $71000000, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par.The most recent dividend was $1.91 and the dividend growth rate is 0.07. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 0.26.What is Filer’s aftertax cost of debt? Enter the answer with 4 decimals (e.g. 0.2345)5.) Filer Manufacturing has 7200000 shares of common stock outstanding. The current share price is $66.70, and the book value per share is $4.38. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $50000000, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $67000000, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par.The most recent dividend was $1.40 and the dividend growth rate is 0.03. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 0.34.What is Filer’s WACC? Enter the answer with 4 decimals (e.g. 0.2345)