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A company's balance sheets show a total of $30 million long -term debt with a coupon rate of 9 percent that matures in 30 years
A company's balance sheets show a total of $30 million long -term debt with a coupon rate of 9 percent that matures in 30 years and market price of 850 dollar The and the debt has a total current market value of $25 million . The balance sheets also show that that the company has 10 million shares of stock . The current stock price is $10 per share . risk free is 0.05 market return is 0.14 and beta is 1.125 The company has 2 million shares of preferred stock with market price30 dollars and dividends of 0.08 of 90 dollar par taxes are 40%
what is the ytm ? what is the cost of common stock? what is the cost of preferred stock what is the total value of the capital "? what is the risk free what is the weight of the bond what is weight of the stocks what is the weight of the preferred stock?
what is the weighted average cost of capital?(hint make sure to apply after tax concept)
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