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: Required: 1. Micro Advantage issued a $5,000,000 par value. 20-year bond a year ago at 98 (Le., 98% of par valuo) with a stated rate of 9%. Today, the bond is selling at 110 fie, 110% of par value). If the firm's tax brackot is 30% what is the current aftertax cost of this debt? 2. Micro Advantage has $5,000,000 preferred stock outstanding that it sold for $24 per share. The preferred stock has a per share par value of $25 and pays a $3 dividend per yeat. The current market price is $30 per share. The firm's tax bracket is 309 . What is the after-tax cost of the preferred stock? 3. In addition to the bonds and preferted stock described in requirements 1 and 2. Micro Advantage has 50,000 shares of common stock outstanding that has a par value of $10 per share and a current market price of $170 per share. The expected after-tax market return on the firm's common equity is 20\%. What is Micro Advantage's weighted-overage cost of capital (WACC)? Complete this question by entering your answers in the tabs below. Micro Aovantage issued a $5,000,000 par volue, 20-year bond a year ago at 96 (1.e.. 90% of par value) with a stated rate of 1916, Today, the bond is selling at 110 (Ce., 110\% of par value), if the firms tax bracket is 30%, what is the current after-tax cost of this debt? (Round youranswer to 2 decomal places. ( Ce. 1234 i 12.344H) ) Below is information regarding the capital structure of Micro Advontage incorporated On the basis of this information you are asked to respond to the following three questions: 1. Micro Advantage issued a $5,000,000 par value, 20-year bond a year ago at 98 (1.e., 98% of par value) with a stated rate of 9%. Required: Today, the bond is selling at 110 (i.e., 110% of par value). If the firm's tox bracket is 30%, what is the current after-tax cost of this debt? 2. Micro Advantage has $5,000,000 preferred stock outstanding that it sold for $24 per share. The preferred stock has a per share par volue of $25 and pays a $3 dividend per yean. The curtent market price is $30 per share. The firm's tax bracket is 30%. What is the 3. In addition to the bonds and preforred stock described in requirements 1 and 2, M cro Advantage has 50,000 shares of common after-tax cost of the preferred stock? stock outstanding that has a par value of $10 pet shore and a current market price of $170 per share. The expected after-tax market feturn 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 has 45,000,000 preferred stock outstanding that it sold for $24 per ahare. Tha preferred itock has a per? mhare par value of $25 and pays a $3 dividend por year. The current market price is 530 per share. The firm's tax bracket is 30 . What in the after-tax coit of the preferred stock? Complete this question by entering your answers in the tabs below. In addition to the bonds and preferred stock desenbed in requirements 1 and 2 , Micro Advartage has 50,000 shares of common stock outstanding that has a par value of 510 per share and a current market price of $170 per share. The expected after-tax market retum on the firmi comman equity is 20 W. What is Morp Advantage's welghted-average cost of capital (WACC)? (Round "After-tax Rate or Expected Return" and "Cost of Capital Components" to 2 decimal. blaces (Le, 1234=12,34 4. ). Weights' to 2 decimal places, and other answers to the nearest whole doer amount
