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answers please thanks in advance Northwest Utility Company faces increasing needs for capital. Fortunately, It has an Aa3 credit rating. The corporate tax rate is

answers please
thanks in advance
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Northwest Utility Company faces increasing needs for capital. Fortunately, It has an Aa3 credit rating. The corporate tax rate is 35 percent. Northwest's treasurer is trying to determine the corporation's current welghted average cost of capital in order to assess the profitability of capiral budgeting projects. Histoncally, the corporavon's earnings and dividends per share have increased about 6.2 percent annually and this should continue in the future. Northwest's common stock is selling at $60 per share; and the company will pay a $4.50 per share dividend (D1). The company's $100 preferred stock has been ylelding 8 percent in the current market. Flotation costs for the company have been estimated by ins investment banker to be $2.00 for preferred stock. The company's optimum capital structure is 50 percent debt. 10 percent preterred stock, and 40 percent common equity in the form of retained esrnings. Refer to the following table on bond issues for comparative ylelds on bonds of equal risk to Northwest. a. Compute the cost of debt, Kd. (Use the accompanying table-relate to the utility bond credit rating for yield.) Note: Do not round intermedlate calculations. Input your answer as a percent rounded to 2 decimal places. b. Compute the cost of preferred stock, KP : Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. c. Compute the cost of common equity in the form of retsined earnings, Ke Note: Do not round intermedlate calculations. Input your answer as a percent rounded to 2 decimal places. d. Caiculate the weighted cost of esch source of copitel and the weighted sveroge cost of copitel. Note: Do not round intermedtate calculations. Input your answers as a percent rounded to 2 decimal places

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