Please use Excel spreadsheet for complete info

1. Grand Adventure Properties offers a 8 percent coupon bond with annual payments. The yield to maturity is 6.85 percent and the maturity date is 8 years from today. What is the market price of this bond if the face value is $1,000?

$951.69

$1,069.07

$1,077.18

$877.51

$1,020.76

3. A Japanese company has a bond outstanding that sells for 89 percent of its ¥100,000 par value. The bond has a coupon rate of 4.8 percent paid annually and matures in 19 years.

What is the yield to maturity of this bond? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

10. Central Systems, Inc. desires a weighted average cost of capital of 9 percent. The firm has an after-tax cost of debt of 6 percent and a cost of equity of 12 percent. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?

1.00

1.17

.90

1.10

.83

11. Miller Manufacturing has a targetdebt–equity ratio of .50. Its cost of equity is 15 percent, and its cost ofdebt is 6 percent. If the tax rate is 34 percent, what is the company’s WACC?(Do not round intermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)

12. Filer Manufacturing has 5 million shares ofcommon stock outstanding. The current share price is $84, and the book value per share is $7. Thecompany also has two bond issues outstanding. The first bond issue has a facevalue $60 million, acoupon of 7 percent,and sells for 94 percent of par. The second issue has a face valueof $35 million, a coupon of 8 percent, and sells for 107 percent of par. The first issuematures in 22 years, the second in 4 years. 

13. Titan Mining Corporation has 9.7 million shares of common stockoutstanding and 410,000 –4 percent semiannual bonds outstanding, par value$1,000 each. The common stock currently sells for $45 per share and has abeta of 1.35, and the bonds have 10 years to maturity and sell for 116percent of par. The market risk premium is 8.5 percent, T-bills are yielding5 percent, and the company’s tax rate is 35 percent.