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52 of 12 17 compte HW Score: 58.33%, 70 of 120 pts 314-28 (book/static) Question Help (Calculating the weighted average cost of capital) You are

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52 of 12 17 compte HW Score: 58.33%, 70 of 120 pts 314-28 (book/static) Question Help (Calculating the weighted average cost of capital) You are working as a consultant to the Lulu Aic Clothing Company, and you have been used to computere propriate discount rate to use in the evaluation of ore purchase a new warehouse facility. You have determined the market value of the film's current capital structure (which the fim consibo be by target offranding our) as follows To finance the purchase. Lulu wilsed 20-year bonds with a $1,000 par value paying 60 percent per year with interest paid annually at the market price of $1,020 Protestock paying a $2.50 dividend can be sold for $38.00. Common stock for Lulu is currently selling for $500 per share. The firm pada 54.00 dividend last year and expecta dividends to continue growing at a rate of 40 percent per year for the indefinite future. The ima mognal tax rate is 34 percentul discount rate should you use to the warehouse project? - Calculate component weights of capital The weight of delt in the firm's capital structure % Round to two decimal perc) Data Table Source of Capital Bonds Preferred stock Common stock Market Valves 3300 000 $200.000 $500.000 Print Done

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