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Calculation of individual costs and WACC Carnival Corporation (CCL) recently sold new bonds at discount...

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Accounting

Calculation of individual costs and WACC Carnival Corporation (CCL) recently sold new bonds at discount price of $949.26. The bonds have a short 5-year maturity, have a coupon rate of 10.50%, and pay interest semi-annually. In addition to the $10.648 billion worth of bonds outstanding, Carnival also has $11.073 billion worth of common stock equity outstanding. According to Yahoo! Finance, Carnival's stock has a beta of 1.71. Currently, the expected return on the market portfolio and risk-free rate are, 6.30% and 0.46%, respectively.
a. Calculate the market value weights for Carnival's capital structure.
b. Calculate Carnival's cost of equity using the CAPM.
c. Calculate Carnival's before-tax cost of debt.
d. Calculate Carnival's current WACC using a 21% corporate tax rate.
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