1. Differentiate the types of federal government debt?.
2. Determine the Weighted Average Cost of Capital (WACC) for a firm with the following capital structure
39,000 41.0%cpn bond due 2/1/2019 priced @101.009
47,000 5.05%cpn bonds due 2/1/2042 Priced @102.847
37,000 4.75% ptd's priced @91.15/shr
6,410,000.00 common shares priced @41.60/shr
Additional Market Data
Beta = .95
US T-Bill = 1.05%
Exp. Ret MKt = 10.90%
Tax Rate = 36.40%