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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 $5,700,000 par value, 20-year bond a year ago at 98 (le 98% of par value) with a stated rate of 5%. Today, the bond is selling at 105 (le. 105% 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 $5,420,000 preferred stock outstanding that it sold for $22 per share. The preferred stock has a per share par value of $25 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 83,000 shares of common stock outstanding that has a par value of $10 per share and a current market price of $150 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 83,000 shares of common stoc value of $10 per share and a current market price of $150 per share. The expected after tax market return on the firm's common e Advantage's weighted average cost of capital (WACC)? (Round "Interest or Dividend Rate", "After tax Rate or Expected Return and to 2 decimal places (le 1234 - 12.34%), "Weights to 3 decimal places, and other answers to the nearest whole dollar amount.) Book Value Interest or Dividend Rate After-tax Rate or Expected Return Current Market Values Weights Bond Cost of Capital Components 96 Preferred Stock Common Stock Total % 56 % 96 $ 0.000 0.00%

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