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6.) Assume a for-profit company has $8 million of long-term debt with an interest rate of 6%. It has $3 million of preferred stock with
6.) | Assume a for-profit company has $8 million of long-term debt with an interest rate | |||||||
of 6%. It has $3 million of preferred stock with a requires dividend rate of 8%. And it | ||||||||
has $4 million of common stock that is estimated to have a cost of capital of 10%. What | ||||||||
is its weighted average cost of capital? |
Please enter amounts below.
a. Long term debt amount = | ||
b. Long term debt interest rate = | ||
c. Preferred stock value = | ||
d. Preferred stock required dividend = | ||
e. Common stock value = | ||
f. Common stock cost of capital = |
Please enter amounts, to get the totals and final answer.
Answer: | ||||||
Long term debt | $0 | X | 0% | = | $0 | |
Preferred stock | $0 | X | 0% | = | $0 | |
Common Stock | $0 | X | 0% | = | $0 | |
Total Capital | $0 | Total Cost | $0 | |||
Total Cost | $0 | = | ANSWER | |||
Total Capital | /$0 | |||||
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