1. Pitney Bowes (PBI) is a pure-play, leveraged firm which offers mail services to businesses of all sizes. Your boss, the CFO of Pitney Bowes, has asked you to compute the weighted average cost of capital for the company. assembled the data below. You have Bonds PBI has borrowed from creditors using three types of bonds, each with a $1,000 par value and paying interest semi-annually: 625% bonds due three years hence. Current price $1,044 61. There are 35m of these bonds outstanding 4.70% bonds due six years hence. Current price: $915.41. There are 190m of these bonds outstanding 5.25% bonds due twenty-three years hence. Current price: $968.74. There are 0.54m of these bonds outstanding Preferred stock: PBI has one type of preferred stock outstanding. PBI has just paid the annual preferred dividend of 1.676 per share; the next dividend will be paid one year hence. Prefered shares currently trade at $23.07. 15m of these shares are outstanding. Common stock: PBI has just paid an annual dividend of S0.75 per share of common stock, the next dividend will be paid one year hence. Common shares currently trade for $9.80 per share. 186.7m common shares are outstanding presently. PBl's equity beta is 1.30. PBI's marginal tax rate is 40%. The risk-free rate is presently 1.6%. The historical market risk Additionalinformation: premium is 7% Use this information to calculate PBl's WACC. Modify the basic WACC equation as needed to fit PBl's situation 1. Pitney Bowes (PBI) is a pure-play, leveraged firm which offers mail services to businesses of all sizes. Your boss, the CFO of Pitney Bowes, has asked you to compute the weighted average cost of capital for the company. assembled the data below. You have Bonds PBI has borrowed from creditors using three types of bonds, each with a $1,000 par value and paying interest semi-annually: 625% bonds due three years hence. Current price $1,044 61. There are 35m of these bonds outstanding 4.70% bonds due six years hence. Current price: $915.41. There are 190m of these bonds outstanding 5.25% bonds due twenty-three years hence. Current price: $968.74. There are 0.54m of these bonds outstanding Preferred stock: PBI has one type of preferred stock outstanding. PBI has just paid the annual preferred dividend of 1.676 per share; the next dividend will be paid one year hence. Prefered shares currently trade at $23.07. 15m of these shares are outstanding. Common stock: PBI has just paid an annual dividend of S0.75 per share of common stock, the next dividend will be paid one year hence. Common shares currently trade for $9.80 per share. 186.7m common shares are outstanding presently. PBl's equity beta is 1.30. PBI's marginal tax rate is 40%. The risk-free rate is presently 1.6%. The historical market risk Additionalinformation: premium is 7% Use this information to calculate PBl's WACC. Modify the basic WACC equation as needed to fit PBl's situation