Below is information regarding the capital structure of Micro Advantage incorporated On the basis of this information you are asked to respond to the following three questions: Required: 1. Micro Advantage issued a $5,550,000 par value, 20-year bond a year ago at 98 (le,, 98% of par value) with a stated rate of 8%. Today, the bond is selling at 110 (1.e, 110% of par value). If the firm's tax bracket is 30%, what is the current after-tax cost of this debt? 2. Micro Advantage has $5,330,000 preferred stock outstanding that it sold for $25 per share. The preferred stock has a per share par value of $24 and pays a $3 dividend per year. The current market price is $30 per share. The firm's tax bracket is 30%. What is the after-tax cost of the preferred stock? 3. In addition to the bonds and preferred stock described in requirements 1 and 2. Micro Advantage has 68,000 shares of common stock outstanding that has a par value of $10 per share and a current market price of $140 per share. The expected after-tax market return on the firm's common equity is 20%. What is Micro Advantage's weighted-average cost of capital (WACC)? Complete this question by entering your answers in the tabs below. Micro Advantage issued a $5,550,000 par value, 20 -year bond a year ago at 98 (1.e., 98% of par value) with a stated rate of 8%. Today, the bond is selling at 110 (1.e., 110% of par value). If the firm's tax bracket is 30%, what is the current after tax cost of this debt? (Round your answer to 2 decimal places. (i.e. 1234=12.34%) ) Complete this question by entering your answers in the tabs below. Mico Advantage has 55,330,000 prefered sock outstanding that at sold for 125 per share. The preferred stock has a per thare par value of 324 and pays a 53 dividend per year. The currenit market price is 530 ger share. The firmil tar bracker is 30\%. What is the after tak cost of the preferied stock? (Rosind roun answer to 2 decamaf places. (i. e. a 12.M =12.14% )) Complete this question by entering your answers in the tabs below. In addition to the bonds and preferred stock described in requirements 1 and 2, Micro Advantage has 68,000 shares of common stock outstanding that has a par value of $10 per share and a current market price of $140 per share. The expected after-tax market return on the firm's carmmon equity is 20%. What is Micro Advantage's weighted-average cost of capital (WACC)? (Round "Interest or Dividend Rate", "After-tax Rate or Expected Return" and "Cost of Copital Componenits" to 2 decimal places (i.e. .1234=12.34% ), "Weights" to 3 decimal places, and other answers to the nearest whole dollar arnount.)
