1 A,B

ANSWER

Debt 33,000 bonds with a 5.0% coupon rate, payable annually, 15 years to maturity, selling at $1,050 per bond. Common Stock 647,000 shares of common stock outstanding. The stock sells for a price of $68 per share and has a beta of 1.98. Preferred Stock 123,000 preferred shares outstanding, currently trading at $74.89 per share; with an annual dividend payment of $7.08, Market The market risk premium is 24% and the risk free rate is 6% Tax Rate 21% What is the weighted average cost of capital? (Answer as a percentage and round to 2 decimals) Select one: a. 29.20 % b. 27.89 % c. 31.17% d. 32.01% e. 27.14% Debt 33,000 bonds with a 5.0% coupon rate, payable annually, 15 years to maturity, selling at $1,050 per bond. Common Stock 647,000 shares of common stock outstanding. The stock sells for a price of $68 per share and has a beta of 1.98. Preferred Stock 123,000 preferred shares outstanding, currently trading at $74.89 per share; with an annual dividend payment of $7.08, Market The market risk premium is 24% and the risk free rate is 6% Tax Rate 21% What is the weighted average cost of capital? (Answer as a percentage and round to 2 decimals) Select one: a. 29.20 % b. 27.89% c. 31.17% d. 32.01% e. 27.14%