5 17 20 Chp 14 Quiz 20 WACC.pdf x 6 pope/Downloads/17_20_Chp%2014_Quiz%2020%20WACC.pdf Watch Game & Welcome to Utah S... O Dashboard The Wall Street Jour. A USU Testing Service M GMAIL M AggieMail Eastern Music has 20,000 shares of common stock outstanding at a price per share of $30. The firm also has 5,000 share of 5 percent preferred stock outstanding at a price per share of $60. The preferred stock has a stated value of $100. The company has a bond outstanding that sells for $102 and matures in 5 years. The total face value of the bond is $300,000. The bond pays semi-annual coupons and has a coupon rate of 4%. The company has a beta of 1.66. The ten-year US treasury bond yield is 3%. The market risk premium is 5%. What is the company's cost of equity? 72 10.7% 8% 032 What is the company's after-tax cost of debt, if the company's tax rate is 25%? 3.6% 1.8% 2.7% Question 3 1 pts What is the company's cost of preferred stock? 8.3% 5% Question 4 2 pts What is the debt-to-capital ratio? 33.8% 25.4% 49.8% Question 5 2 pts What is the company's WACC? 7.5% 8.4% 9.3%