Question: Just need the interpretation portion (wording) as shown in sample please 8. ABC Corp. is undergoing a major expansion. The expansion will be financed by
8. ABC Corp. is undergoing a major expansion. The expansion will be financed by issuing new 15-year, $1,000 par, 9% annual coupon bonds. The market price of the bonds is $1,070 each. Flotation expense on the new bonds will be $50 per bond. The marginal tax rate is 35%. What is the pre-tax cost of debt for the newly-issued bonds? 9. New Jet Airlines plans to issue 14-year bonds with a par value of 1,000 that will pay S60 every six months. The bonds have a market price of S1,220. Flotation costs on new debt will be 4%. If the firm has a 35% marginal tax bracket, what is cost of existing debt? 10. GHJ Inc. is investing in a new project of $16 million. It will raise $2 million of bonds, $4 million of preferred stock, and S10 million of new common stock. If the after-tax cost of debt is 7%, cost of preferred stock is 9%, the cost of retained earnings is 14%, and the cost of new commmon stock is 17%, what is the WACC
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