Please address the questions attached. Please e sure tohave a proficiency in regarding the questions.

1. James Mabery is considering purchasing a bond that pays annual coupons at a rate of 5 percent and matures in 9 years. If the YTM on this bond is 7.50 percent, how much should James pay for this bond if she purchases the bond today?

1. Legal Trade Company has 6 percent coupon bonds on the market with 17 years left until maturity. The bond makes annual payments. If the bond currently sells for $838.07, what is the YTM?
   

2. Sage Construction Company has paid dividends that have increased on average by 2 % every year for the last 4 years. This year’s dividend was $5.25. The current stock price is $107.10. In addition, Sage Construction Company’s beta has been estimated at .85. The risk free rate is estimated at 2.3% and the market risk premium is 7.3%. What is the best estimate of Sage Construction Company ‘s cost of equity? Explain why you picked this estimate?
   
   

3. Malone Manufacturing Company has $10 million in outstanding debt (10,000 bonds with a face value of $1,000) with a current market value of $1100, 9 years until maturity, and a coupon rate of 7 percent (annual payments). What is the cost of debt for Malone Manufacturing Company?

1. Made in the USA Corporation currently has 2 million equity shares outstanding trading at a price of $5 per share with a beta of 1.5. In addition, Made in the USA Corporation has $3 million in outstanding debt ($3.3 million in current market value) with a current market value of $1100, a coupon rate of 8 percent (annual payments), and 12 years to maturity. If the market risk premium is 7 percent, the risk free rate is 3 percent, and the appropriate tax rate is 15 percent, what is Made in the USA Corporation’s WACC?

1. Windstream Inc. has a target debt-equity ratio of 1.15. Its WACC is 9.4%, the tax rate is 35%, and the after tax cost of debt is 6.8%. What is the cost of equity?