1 A,B,C

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 after tax cost of debt (Ra)? (Answer as a percentage and round to 2 decimals) Select one: a. 5.55 % b. 6.39% c. 1.52 % d. 3.58 % e. 2.27 % 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 cost of preferred stock (Rp)? (Answer as a percentage and round to 2 decimals) Select one: a. 12.26% b. 9.45 % c. 11.42% d. 7.39% e. 8.14 % 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 cost of common stock (Re)? (Answer as a percentage and round to 2 decimals) Select one: a. 51.46 % b. 55.49% c. 56.33% d. 52.21% e. 53.52 %