15 years 2 Price per share of Common Stock $ 45.00 3 Price per share of pereferred stock $ 60.00 4 price of bond( par value (1000) $ 865.00 5 Number of shares of common stock outsanding 2,300,000 6 number of sharer of preferred stock outstanding 500,000 7 number of bonds outstanding 60,000 8 cooupon rate on bonds 5.00% 9 time remaining untill maturity of bonds 10 marginal tax rate 25.00% 11 par value of preferred stock 50 12 dividend rate on peferred stock 9.00% 13 common stock dividend (di) 3 74 dividend growth rate (common) 6.00% 15 Risk - free rate 0 16 Beta 1.20% 17 expected return on the market 12.00% 18 risk premium on stocks over bonds 4.50% 19 20 1.Calculate the Weighted Cost of Bonds, Common Stock, & Preferred Stock 21 2.Using the "RATE formula from Week 3, find the YTM. Remember to adjust NPER (NPERX PPY) and PMT (NPER+PPY), and multiply RATE (YTM) by PPY. 22 23 3. Convert YTM to After-Tax Cost of Debt, assuming a 25% tax rate. 24 25 4.Calculate the cost of Preferred Stock