1: Use the following data for ALFA Company to answer the following questions? (6 Marks) Item Symbol Value Risk Free Rate Rf 7% Stock Risk B 1.5 Market Return Rm 25% Interest Rate for Debt Rd (B.T) 9% TAX rate T 5% Preferred Stock Dividend D(ps) 10 Preferred Stock Price P(ps) 100 floatation cost Ps FC 4% If the capital structure in this Company was distributed as the following: Item Amount ($) Debt 50,000 Common Stocks 100,000 Preferred Stocks 50,000 1. Calculate the cost of common stocks: (Rs) 2. Calculate the cost of Preferred stocks: (Rps) 3. Calculate the cost of Debt: (Rd) 4. Calculate the weight of each component in the capital structure: 5. Calculate the weighted average cost of capital WACC:

7% 01: Use the following data for ALFA Company to answer the following questions Item Symbol (6M Value Risk Free Rate RE Stock Risk Market Return Rm 25% Interest Rate for Debt Rd (B.T) 9% TAX rate Preferred Stock Dividend D(ps) Preferred Stock Price P(ps) 100 floatation cost Ps FC 4% 1.5 5% If the capital structure in this Company was distributed as the following Item Debt Common Stocks Preferred Stocks Amount ($) 50,000 100,000 50,000 1. Calculate the cost of common stocks: (Rs) 2 Calculate the cost of Preferred stocks: (Rps) 3. Calculate the cost of Debt: (Rd) 4. Calculate the weight of each component in the capital structured 6. Calculate the weighted average cost of capital WACC: Q1: Use the following data for ALFA Company to answer the following question Symbol RE Item Risk Free Rate Stock Risk Market Return Interest Rate for Debt TAX rate Preferred Stock Dividend Preferred Stock Price floatation cost Ps Rm Rd (B.T) Value 7% 1.5 25% 9% 59 D(ps) P(s) FC 10 100 49% If the capital structure in this Company was distributed as the following Item Debt Common Stocks Preferred Stocks Amount ($) 50,000 100,000 50,000 1. Calculate the cost of common stocks: (Rs) 2. Calculate the cost of Preferred stocks: (Rps) 8. Calculate the cost of Debt: (Rd) 4. Calculate the weight of each component in the capital crustus