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 $$5,550,000$ par value, $20-$year bond a year ago at $98($i$.$e$.,98\%$ of par value$)$ with a stated rate of $8\%.$ Today, the bond is selling at $110($i$.$e$.,110\%$ of par value$).$ If the firm$$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$)?$

I$\text{'}$m having trouble trying to figure out how to calculate the Weights and Cost of Capital Components.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:

polnts $1.$ Micro Advantage issued a $$5,550,000$ par value, $20-$year bond a year ago at $98($i$.$e$.,98\%$ of par value$)$ with a stated rate of $8\%.$

Today, the bond is selling at $110($i$.$e$.,110\%$ of par value$).$ If the firm's tax bracket is $30\%,$ what is the current after$-$tax cost of this debt?

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?

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$)?$

Answer is complete but not entirely correct.

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 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 $($i$.$e$..1234=12\mathrm{.}34\%),$ "Weights" to $3$ decimal places, and other answers to the nearest whole dollar amount.$)$