Calculation of individual costs and WACC Carnival Corporation (CCL) recently sold new bonds at discount price...

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Calculation of individual costs and WACC Carnival Corporation (CCL) recently sold new bonds at discount price of $974.36. The bonds have a short 4-year maturity, have a coupon rate of 10.50%, and pay interest semi-annually. In addition to the $9.473 billion worth of bonds outstanding, Carnival also has $12.295 billion worth of common stock equity outstanding. According to Yahoo! Finance, Carnival's stock has a beta of 1.78. Currently, the expected return on the market portfolio and risk-free rate are, 6.50% and 0.45%, 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. (Round to two decimal places.) a. The market value weight of long-term debt in Carnival's capital structure is % The market value weight of common stock equity in Carnival's capital structure is %. (Round to two decimal places.) b. Carnival's cost of equity using the CAPM is %. (Round to two decimal places.) c. Carnival's before-tax cost of debt is %. (Round to two decimal places.) d. Carnival's current WACC using a 21% corporate tax rate is %. (Round to two decimal places.) Calculation of individual costs and WACC Carnival Corporation (CCL) recently sold new bonds at discount price of $974.36. The bonds have a short 4-year maturity, have a coupon rate of 10.50%, and pay interest semi-annually. In addition to the $9.473 billion worth of bonds outstanding, Carnival also has $12.295 billion worth of common stock equity outstanding. According to Yahoo! Finance, Carnival's stock has a beta of 1.78. Currently, the expected return on the market portfolio and risk-free rate are, 6.50% and 0.45%, 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. (Round to two decimal places.) a. The market value weight of long-term debt in Carnival's capital structure is % The market value weight of common stock equity in Carnival's capital structure is %. (Round to two decimal places.) b. Carnival's cost of equity using the CAPM is %. (Round to two decimal places.) c. Carnival's before-tax cost of debt is %. (Round to two decimal places.) d. Carnival's current WACC using a 21% corporate tax rate is %. (Round to two decimal places.)