Question: Please help & I will rate! A company faces a 40% corporate income tax rate. It has debt and equity in its capital structure, with

Please help & I will rate!

A company faces a 40% corporate income tax rate. It has debt and equity in its capital structure, with the following characteristics: Equity Debt 15,000 shares 1,000 bonds $85 current price per share $920 current bond value 13% cost of equity 5% pre-tax cost of debt Calculate the following. (Percent, not decimals! Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher. Only round your final answer to TWO decimal places: for example, 12.34.) The weight of equity is _________%. The weight of debt is _________%. The company is evaluating a new investment project that has the SAME RISK as its typical projects. The rate it should use to discount the projects expected future cash flows is the companys WACC equal to ____________ %. If, instead, the company is evaluating a new investment project that has a HIGHER RISK than its typical projects, it should use a discount rate that is: (a) higher than the companys WACC (b) the same as the companys WACC (c) lower than the companys WACC

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