Using the TIME VALUE FUNCTIONS on your calculator, calculate the following.

NOTE: Remember, interest rates are quoted as annual rates.

4 How much would the monthly loan payment be for a $30,000 loan at 5.4% APR for 7 years?

5. _____ What is the market value of a bond with a YTM of 7%, PAR value of $10,000, coupon payments at 8% paid quarterly, and 12 years till maturity?

6. _____ Given the following information, calculate the WACC.

Percent of Capital Structure Debt 50%

Preferred stock 7%

Common stock 43%

Additional Information:

Corporate Tax Rate 27%

Dividend, Preferred $10

Expected Common Dividend $4

Price, Preferred $200

Growth Rate 8%

Bond Yield 5%

Floatation Cost Preferred $5

Price, Common Stock $100