Question: Use the following information about Perry Inc. for a - d . Common stock: 1 0 0 , 0 0 0 shares outstanding. $ 5

Use the following information about Perry Inc. for a-d.
Common stock: 100,000 shares outstanding. $50 per share, beta=1.75
Bonds: 2,000 bonds outstanding, $1,000 face value each, 2% coupon paid semiannually, 9 years to maturity, market price of $1,050 per bond.
Market risk premium=8.5%, yield on 30 day Treasury Bill=4%, marginal tax rate =20%
a)What is Perry Inc's Weight of Debt? Weight of Equity?
b)What is Perry Inc's Before Tax Cost of Debt? After Tax Cost of Debt?
c)What is Perry Inc's Cost of Equity?
d)What is Perry Inc's WACC?

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