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ASSIGNMENT #2 Calculate the Weighted Avg Cost of Capital, using the following Data: ABC CORPORATION DATA FOR THE YEAR 2014 1 LT DEBTS (LTD) 8%

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ASSIGNMENT #2 Calculate the Weighted Avg Cost of Capital, using the following Data: ABC CORPORATION DATA FOR THE YEAR 2014 1 LT DEBTS (LTD) 8% Bonds with remaining maturity of 10 years currently selling in the market for 112.75. No of Bonds Outstanding 5 milliion. Bonds: 2 Stockholders Equity (SHE) 7% pf Stock currently selling in the Market a Price of $ 115.00 each No of Pf Stock Outstanding 10 million Pf Stock Common Stock: Current Market Price $ 60.20. No of Common shares outstanding = 75 million 3 Marginal Tax Bracket (MTB) ABC's MTB is = 35% ASSIGNMENT #2 Calculate the Weighted Avg Cost of Capital, using the following Data: ABC CORPORATION DATA FOR THE YEAR 2014 1 LT DEBTS (LTD) 8% Bonds with remaining maturity of 10 years currently selling in the market for 112.75. No of Bonds Outstanding 5 milliion. Bonds: 2 Stockholders Equity (SHE) 7% pf Stock currently selling in the Market a Price of $ 115.00 each No of Pf Stock Outstanding 10 million Pf Stock Common Stock: Current Market Price $ 60.20. No of Common shares outstanding = 75 million 3 Marginal Tax Bracket (MTB) ABC's MTB is = 35%

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