How much is the after-tax cost of debt

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Lancelin Manufacturing has a target debt-to-equity ratio of .35. It only has ordinary share for its equity. Its cost of equity is 12 percent, and its pre-tax cost of debt is 6 percent. The tax rate is 27.50 percent.

Question 1: If the company's total equity is $2,500,000, how much is the target total liabilities? (Round to the nearest dollar). Case sensitive. E.g., type in your answer in this format 1,000,000 for $1,000,000.

Question 2: How much is after-tax cost of equity? Case sensitive. E.g., type in your answer in this format 2.00 for 2.

Question 3: How much is the after-tax cost of debt? Case sensitive. E.g., type in your answer in this format 2.00 for 2.

Question 4: What is the company's WACC? Case sensitive. E.g., type in your answer in this format 2.00 for 2.

Reference no: EM132724802

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