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2 . ( 2 4 points ) May East Enterprises has 3 2 0 , 0 0 0 shares of common stock outstanding, currently selling
points May East Enterprises has shares of common stock outstanding, currently selling for $ per share. The company just issued a dividend of $ and the dividend is expected to grow at a constant a year. The company also has coupon bonds outstanding, $ par value, a What is the market value of equity? What is the market value of debt? b What are the company's capital structure weights on a market value basis? c Calculate the company's cost of equity and the cost of debt. d Calculate the firm's weighted average cost of capital WACC based on market weights.
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