Question: please answer all three parts, I will leave a good review for you AFTER-TAX COST OF DEBT The Holmes Company's currently outstanding bonds have a

please answer all three parts, I will leave a good review foryou AFTER-TAX COST OF DEBT The Holmes Company's currently outstanding bonds haveplease answer all three parts, I will leave a good review for you

AFTER-TAX COST OF DEBT The Holmes Company's currently outstanding bonds have a 9% coupon and a 14% yield to maturity. Holmes believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 40%, what is Holmes's after-tax cost of debt? Round your answer to two decimal places. COST OF COMMON EQUITY AND WACC Palencia Paints Corporation has a target capital structure of 45% debt and 55% common equity, with no preferred stock. Its before-tax cost of debt is 13%, and its marginal tax rate is 40%. The current stock price is Po = $20.50. The last dividend was Do = $2.00, and it is expected to grow at a 8% constant rate. What is its cost of common equity and its WACC? Round your answers to two decimal places. Do not round your intermediate calculations. a. rs = *% b. WACC = %

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