1. ?AllCity, Inc., is financed 45 % with? debt, 5% with preferred? stock, and 50 % with common stock. Its cost of debt is 6.3 %?, its preferred stock pays an annual dividend of $2.52 and is priced at $33. It has an equity beta of 1.11. Assume the? risk-free rate is 1.6%?, the market risk premium is 7% and? AllCity's tax rate is 35%.
What is its? after-tax WACC?
2. Which is more common for an investment grade bond, a first call price of par or a first call price of 100+half the coupon rate?
3. A 10 nc (non-callable) 5 bond was issued seven years ago. It was rated B- at the time of issuance and its rating has not changed since issuance. Which is more likely, that the call price is now par or that the call price is 107?