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 $5,450,000 par valve 20 year bond a year ago at 98 (le, 98% of par value) with a stated tate of 5% Today, the bond is selling at 115 ( 115% 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 $5.270.000 preferred stock outstanding that it sold for $23 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 58,000 shares of common stock outstanding that has a par value of $10 per share and a current market price of $190 per share. The expected after-tax market retum 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 Required 2 Required a Micro Advantage issued a $5,450,000 par value, 20 year bond a year ago at 08 (1,98% of par value) with a stated rote of $%. Today, the bond is selling at 115 (le, 115% 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 the 1234 - 12.14) Current after of this cobi 5 Required 2 > 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 $5,450,000 par value, 20-year bond a year ago at 98 (l.e. 98% of par value) with a stated rate of 5% Today, the bond is selling at 115 (.e., 115% 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 $5.270,000 preferred stock outstanding that it sold for $23 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 alter-tax cost of the preferred stock? 3. In addition to the bonds and preferred stock described in requirements 1 and 2 Micro Advantage has 58,000 shares of common stock outstanding that has a par value of $10 per share and a current market price of $190 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 Micro Advantage has $5,270,000 preferred stock outstanding that it sold for $23 por 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 (Round your answer to 2 decimal places. (1 1234 = 12.34%) Allor-x cost of the preferred stock Help Save 3. In addition to the bonds and preferred stock described in requirements 1 and 2 Micro Advantage has 58,000 shares of common stock outstanding that has a par value of $10 per share and a current market price of $190 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 a In addition to the bonds and preferred stock described in requirements 1 and 2, Micro Advantage has 58,000 shares of common stock outstanding that has a par value of $10 per share and a current market price of $190 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 te 1234 - 12.34%), "Weights to 3 decimal places, and other answers to the nearest whole dollar amount.) Show less Book Value Interest or Dividend Rate % After-tax Rate or Expected Return Current Market Values Weights Cost of Capital Components Bond Protested Stock Common Stock TO % S
