Wingslow Company has a cost of equity of 12%, a pre-tax cost of debt of 7%, and a tax rate of 35%. What is the firm's weighted average cost of capital if the debt-equity ratio is 0.60? Green and Red has a cost of equity of 11% and a pre-tax cost of debt of 8.5%. The firm's target weighted average cost of capital is 9% and its tax rate is 35%. What is the firm's target debt-equity ratio?

Silverstone and Moore has 10,000 shares of common stock outstanding at a price per share of $46 and a rate of return of 14%. The firm has 5,000 shares of preferred stock outstanding at a price of $58 a share and a rate of return of 12.07%. The outstanding debt has a total face value of $200,000 and a market price equal to 98% of face value. The yield-to-maturity on the debt is 8.03%. What is the firm's weighted average cost of capital if the tax rate is 34%?

ACS Industries is considering a project with an initial cost of $6.2 million. The project will produce cash inflows of $1.8 million a year for five years. The firm uses the subjective approach to assign discount rates to projects. For this project, the subjective adjustment is +2%. The firm has a pre-tax cost of debt of 6.7% and a cost of equity of 9.4%. The debt-equity ratio is 0.6 and the tax rate is 35%. What is the net present value of the project?

ABC, Inc., has three divisions: A, B, and C. Division A has the least risk and division C has the most risk. ABC has an aftertax cost of debt of 4.6% and a cost of equity of 9.5%. The firm is financed with 50% debt and 50% equity. Management has told the divisional manager of division A that projects in that division are assigned a discount rate that is 1% less than the firm's weighted average cost of capital. What is the discount rate applicable to division A?