Question 40 (1 point) Listen Kosmo, Inc. has a market value capital structure of 20% debt and 80% equity. The tax rate is 40%. The firm's bonds currently trade in the market for $930. These bonds have a face value of $1,000, a coupon rate of 8% paid semiannually, and 10 years remaining to maturity. The firm's common stock trades for $15 per share. The firm has just paid a dividend of $2.00 (i.e., Do = 2.00). Future dividends are expected to grow at 3% per year. Based on this information, Kosmo, Inc.'s WACC is ______%. 1) 13.35 2) 10.91 3) 12.17 4) 14.47 5) 11.94 6) None of the answers in this list is within 0.05 percentage points of the correct answer.

Question 3:Blooming Ltd. currently has the following capital structure: Debt:$2,500,000 par value of outstanding bond that pays annually 12% coupon rate with an annual before-tax yield to maturity of 10%. The bond issue has face value of $1,000 and will mature in 25 years. Ordinary shares:65,000 outstanding ordinary shares. The firm plans to pay a $7.50 dividend per share in the next financial year. The firm is maintaining 3% annual growth rate in dividend, which is expected to continue indefinitely. Preferred shares: 40 000 outstanding preferred shares with face value of $100,paying fixed dividend rate of 14%.Company tax rate is 30%Required: Complete the following tasks: Only work on questions a, b and c a)Calculate the current price of the corporate bond? b)Calculate the current price of the ordinary share if the average return of the shares in the same industry is 9%? c)Calculate the current value of the preferred share if the average return of the shares in the same industry is…

Question 2 Given the following information for Huntington Power Co., find the WACC. Assume the company’s tax rate is 35 percent.   Debt: 5,000 6 percent coupon bonds outstanding, GH¢ 1,000 par value, 25 years to maturity, selling for 105 percent of par; the bonds make annual payments.   Common stock: 175,000 shares outstanding, selling for GH¢ 58 per share; the beta is 1.10. Market: 7 percent market risk premium and 5 percent risk-free rate.

please answer only last two parts Blooming Ltd. currently has the following capital structure:   Debt:  $2,500,000 par value of outstanding bond that pays annually 12% coupon rate with an annual before-tax yield to maturity of 10%. The bond issue has face value of $1,000 and will mature in 25 years.   Ordinary shares: 65,000 outstanding ordinary shares. The firm plans to pay a $7.50 dividend per share in the next financial year. The firm is maintaining 3% annual growth rate in dividend, which is expected to continue indefinitely.   Preferred shares: 40 000 outstanding preferred shares with face value of $100, paying fixed dividend rate of 14%.   Company tax rate is 30%.   Required: Complete the following tasks:   Calculate the current price of the corporate bond? Calculate the current price of the ordinary share if the average return of the shares in the same industry is 9%? Calculate the current value of the preferred share if the average return of the shares in the same industry is…