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9 points Zietlow Corporation has 2.11 million shares of common stock outstanding with a book value per share of 455 with a recent divided of

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9 points Zietlow Corporation has 2.11 million shares of common stock outstanding with a book value per share of 455 with a recent divided of 65. The firm's capital also includes 29000 shares of 4% preferred stock outstanding with a par value of 100 and the fema debt include 2520 55 percent quarterly bonds outstanding with 25 years maturity issued five years ago. The current trading price of the preferred stock and bonds are 106% of its par value and comomon stock trades for 155 with a constant growth rate of 6% The beta of the stock is 1.13 and the market visk premium is 7% Calculate the after tax Weighted Avergae Cost of Capital of the firm assuming a tax rate of 30% (Must show the steps of calculation) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) B IUS Paragraph Arial 10pt Ev A 21 I. XO THE 19

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