Question
13. Calculate Company Cs weighted average cost of preferred stock, given the following information: (a) Dividend on Preferred Stock: $4.25, (b) Price of Preferred Stock:
13. Calculate Company Cs weighted average cost of preferred stock, given the following information: (a) Dividend on Preferred Stock: $4.25, (b) Price of Preferred Stock: $53.20, (c) Debt: $5,000,000, (d) Equity: $3,000,000, and (e) Preferred Stock: $500,000.
14. Calculate Company Ds weighted average cost of capital, given the following information: (a) Tax Rate: 22.5%, (b) Average Price of Outstanding Bonds: $982.20, (c) Coupon Rate (Debt): 5.3%, (d) NPER (Debt): 7, (e) Dividend: $2.30, (f) Growth Rate: 6.3%, (g) Price: $32.50, (h) Dividend on Preferred Stock: $3.25, (i) Price of Preferred Stock: $42.30, (j) Debt: $25,000,000, (k) Equity: $30,000,000, and (l) Preferred Stock: $10,000,000.
15. Calculate Company Es weighted average cost of equity, given the following information: (a) Expected Return on the Market: 12%, (b) Beta for Company E: .80, (c) Expected Risk Free Rate of Return: 3%, (d) Debt: $10,000,000, (e) Equity: $8,000,000, and (f) Preferred Stock: $2,000,000.
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