Question: Use the following information about Rex Inc. for problems 1 - 6 . Common stock: 5 0 0 , 0 0 0 shares outstanding. $

Use the following information about Rex Inc. for problems 1-6.
Common stock: 500,000 shares outstanding. $30 per share, beta=1.6
Bonds: 4,000 bonds outstanding, $1,000 face value each, 4.5% coupon paid semiannually, 9 years to maturity, bond quote of 95.
Market risk premium=8%, yield on 30 day Treasury Bill=3.5%, Tax rate =21%
Question 1
What is Rex Inc's Weight of Debt?
Question 2
What is Rex Inc's Weight of Equity?
Question 3
What is Rex Inc's Before Tax Cost of Debt?
Question 4
What is Rex Inc's After Tax Cost of Debt?
Question 5
What is Rex Inc's Cost of Equity?
Question 6
What is Rex Inc's WACC?

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