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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