Question 1: The June Bug has a $530000 bond issue outstanding. These bonds have a 9.8 percent coupon, pay interest semiannually, and have a current market price equal to 104 percent of face value. The tax rate is 33 percent. What is the amount of the annual interest tax shield?

Question 2: Douglass & Frank has a debt-equity ratio of 0.32. The pre-tax cost of debt is 6.7 percent while the unlevered cost of capital is 11.2 percent. What is the cost of equity if the tax rate is 33 percent? Express your answer as a percent , with at least two digits to the right of the decimal. Do not include the percent sign, or any punctuation other than the decimal.

Question 3: The Corner Bakery has a debt-equity ratio of 0.27. The firm's required return on assets is 8.9 percent and its cost of equity is 10.52 percent. What is the pre-tax cost of debt based on M&M Proposition II with no taxes? Express your answer as a percent, with at least two digits to the right of the decimal. Do not include the percent sign, or any punctuation other than the decimal.

Question 4: The Green Paddle has a cost of equity of 17.1 percent and a pre-tax cost of debt of 4.3 percent. The debt-equity ratio is 0.34 and the tax rate is 37 percent. What is Green Paddle's unlevered cost of capital? Express your answer as a percent, with at least two digits to the right of the decimal. Do not include the percent sign, or any punctuation other than the decimal.

Question 5: Winter's Toyland has a debt-equity ratio of 0.51. The pre-tax cost of debt is 7.8 percent and the required return on assets is 13.7 percent. What is the cost of equity if you ignore taxes? Express your answer as a percent , with at least two digits to the right of the decimal. Do not include the percent sign, or any punctuation other than the decimal.