Questions: Below are two independent situations, please critically comments: Situation A (10 points) 1. We can use the coupon rate on a firm's bonds to estimate the pre-tax cost of debt for the firm. Situation B (10 points) It is good if we use book values in calculating the cost of each of the capital components within a firm's capital structure. 2. Below are two independent cases Case X (15 points) PT Untung Joss just paid Rp 1,60,- dividend on its ordinary shares. If PT Untung Joss is expected to increase its annual dividend by 2 percent per year into the foreseeable future and the current price of PT Untung Joss's ordinary shares is Rp 11,66,- what is the cost of ordinary shares for PT Untung Joss? Case Y (15 points) The firm's bonds currently have 12 years maturity, 9,50 percent coupon rate and are sold at price of Rp 1.200,- (face value Rp 1.000,-). The these bonds are the only debt outstanding fpr the firm, what is the after-tax cost of debt for the firm, assuming the marginal tax rate for the firm is 34 percent