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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

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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 (l. 98% of par value) with a stated rate of 8% Today, the bond is selling at 110 0e, 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 55,330,000 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 ofter-tax cost of the preferred stock? 3. In addition to the bonds and preferred stock described in requirements 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. Required 1 Required 2 Required 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)? (Round "Interest or Dividend Rate", "After tax Rate or Expected Return" and "Cost of Capital Components" to 2 decimal places (1...1234 - 12.34%). "Weights" to 3 decimal places, and other answers to the nearest whole dollar amount) Show less Book Value Interest or After tax Rate or Current Market Dividend Rate Cost of Capital Expected Return Values Weights Components Bond % % % Preferred Stock % % % Common Stock % % % 5 5 0.000 0.00% Total

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