1. Blue Crab, Inc. plans to issue new bonds, but is uncertain how the market would set the yield to maturity. The bonds would be 30-year to maturity, carry a 11.14% annual coupon, and have a $1000 par value. Blue Crab, Inc. has determined that these bonds would sell for $952. What is the yield to maturity for these bonds?
2. How do you calculate the WACC in Excel to include the following:
Weight of Debt, Cost of Debt, Marginal Tax Rate, Weight of Preferred Stock, Cost of Preferred Stock, Weight of Equity, Cost of Equity