1. Jakbe company issued $1000 par value, non-collable bond that now has 29 years to maturity and 7% annual coupon that's paid semiannually. the bonds sells for &1045 and the company's tax rate is 40%. what's the component after tax cost of debt for use in the WAAC calculations?
2. Johnny Come Lately Computers (JCMC) has 20,000 bonds outstanding, selling at 98 percent of par; 300,000 shares of stock outstanding, selling at $32.71 per share; and 50,000 shares of preferred stock, trading at $82 per share. What weight will common stock have in the computation of the firm's WACC?