Dothraki has 50,000,000 shares of common stock outstanding that are trading for $29.70 per share. The company’s beta is 1.4. Financial analysts estimate that the market risk premium over 10-year Treasury Bonds is 6 percent and 10-year Treasury Bonds currently yield 2%. Dothraki’s outstanding bonds have a 6.0% coupon rate, a $1,000 face value, pay semi-annual coupons, and mature in 10 years. There are 450,000 of these bonds outstanding and they are currently selling in the open market for 110% of par value. You have also been informed you that the tax rate to use for the WACC and the capital budgeting analysis is 20%. What is the WACC for Dothraki for this project?

Copper Corp. has an outstanding bond issue that is currently selling for $1,073.95. The yield to maturity is 10.7%, and the bonds mature in 9 years. Assuming that the face value is $1000 and the bonds pay a semi-annual coupon, what is the current yield on the bonds?   7.8%   13.4%   11.2%   8.9%

Suppose Westerfield Co. has the following financial information: Debt: 900, 000 bonds outstanding with a face value of $1,000. The bonds currently trade at 85% of par and have 12 years to maturity. The coupon rate equals 7%, and the bonds make semiannual interest payments. Preferred stock: 600,000 shares of preferred stock outstanding; currently trading for $108 per share, paying a dividend of $9 annually. Common stock: 25,000,000 shares of common stock outstanding; currently trading for $185 per share. Beta equals 1.22. Market and firm information: The expected return on the market is 9%, the risk - free rate is 5%, and the tax rate is 21 %. Calculate the weight of debt in the capital structure. (Enter percentages as decimals and round to 4 decimals)

Carnival Corporation​ (CCL) recently sold new bonds at discount price of $949.44. The bonds have a short 4​-year ​maturity, have a coupon rate of 11.50​%, and pay interest​ semi-annually. In addition to the ​$9.302 billion worth of bonds​ outstanding, Carnival also has ​$12.009 billion worth of common stock equity outstanding. According to​ Yahoo! Finance,​ Carnival's stock has a beta of 1.95. ​Currently, the expected return on the market portfolio and​ risk-free rate​ are, 6.80​% and 0.74​%, respectively.   a.  Calculate the market value weights for​ Carnival's capital structure. b.  Calculate​ Carnival's cost of equity using the CAPM. c.  Calculate​ Carnival's before-tax cost of debt. d.  Calculate​ Carnival's current WACC using a 21​%corporate tax rate.