*St. Louis Spirits Distillery has two bond issues outstanding, each making semiannual interest payments. The bonds...

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*St. Louis Spirits Distillery has two bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. If the corporate tax rate is 22 percent, what is After-Tax Cost of the Company's Debt? Bond 1 2 Coupon Rate 5.00% 6.35% Bond Price $1,042.50 $994.50 Maturity 5 10 Face Value $41,700,000 $49,725,000 *Toot-Sweet Candies has the following set of current capital structure information: Equity: 40 million shares, $60/share, beta= 1.25, risk-free rate 5%, expected rate of return = 10% Debt: $500 million in outstanding debt, current quote 105, coupon rate = 9% semi-annual, years to maturity = 12, tax rate = 21% Based on the information supplied above, what is the Toot-Sweet Candies' Weighted-Average Cost of Capital (WACC)? *St. Louis Spirits Distillery has two bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. If the corporate tax rate is 22 percent, what is After-Tax Cost of the Company's Debt? Bond 1 2 Coupon Rate 5.00% 6.35% Bond Price $1,042.50 $994.50 Maturity 5 10 Face Value $41,700,000 $49,725,000 *Toot-Sweet Candies has the following set of current capital structure information: Equity: 40 million shares, $60/share, beta= 1.25, risk-free rate 5%, expected rate of return = 10% Debt: $500 million in outstanding debt, current quote 105, coupon rate = 9% semi-annual, years to maturity = 12, tax rate = 21% Based on the information supplied above, what is the Toot-Sweet Candies' Weighted-Average Cost of Capital (WACC)?

Answer rating: 100% (QA)

Here are the steps to calculate the WACC for TootSweet Candies 1 Calculate market value of equity 40... View the full answer