Current Attempt in Progress

You know that the after$-$tax cost of debt capital for Wildhorse Company is $18\mathrm{.}9$ percent. If the firm has only one issue of five$-$year

bonds outstanding. Assume the bonds make semiannual coupon payments and the marginal tax rate is $30$ percent. Assume the par

value of the bonds is $$1,000.$

Excel Template

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different values. When using this template, copy the problem statement from this screen for easy reference to the values you've

been given here, and be sure to update any values that may have been pre$-$entered in the template based on the textbook version

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Problem $13\mathrm{.}15$ a$1-$a$2($Excel Video$)($a$1)$

Calculate the pre$-$tax cost of debt capital.Current Attempt in Progress

Management of Crane, a biotech firm, forecasted the following growth rates for the next three years: $35$ percent, $28$ percent, and $22$

percent. Management then expects the company to grow at a constant rate of $9$ percent forever. The company paid a dividend of $$1\mathrm{.}50$

last week. If the required rate of return is $22$ percent, what is the value of this stock? $($Round intermediate calculations and final answer to

$2$ decimal places, e$.$g$.15\mathrm{.}20.)$

Value of stock $