Question: 2. Using the information provided in the table, determine the information missing below (the YELLOW cells). Assume LMM has a 21 percent tax rate. Maturity

2. Using the information provided in the table, determine the information missing below (the YELLOW cells). Assume LMM has a 21 percent tax rate.

Maturity Year Book value (millions) Percent of total Market value (millions) Percent of total Yield to Maturity Book values Market values
2021 $ 250 0.17 266.06 0.17 0.963% 0.17% 0.16%
2027 300 0.21 326.99 0.21 1.776% 0.37% 0.37%
2048 400 0.28 459.24 0.29 3.274% 0.90% 0.96%
2050 500 0.34 506.39 0.32 3.034% 1.05% 0.99%
Total $ 1,450 1.00 $ 1,558.68 1.00 2.48% 2.49%

Weights
Book value of debt million
Book value of equity million
Book value of company million
Market value of debt million
Market value of equity million
Market value of company million
WACC using book value
WACC using market value

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