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1. Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 20 years to maturity twith a current price of $854. The issue makes semiannual payments and has coupon rate of 5 percent. If the tax rate is 0.39, what is the aftertax cost of debt? Enter the answer with 4 decimals (e.g. 0.0123)

2. Sixx AM Manufacturing has a target debt—equity ratio of 1.5. Its cost of equity is 0.09, and its pretax cost of debt is 0.08. If the tax rate is 0.38, what is the company's WACC? Enter the answer with 4 decimals (e.g. 0.0123)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93050815

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