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 $5,050,000 par value, 20-year bond a year ago at 98 (t.e., 98% of par value) with a stated rate of 8% Today, the bond is selling at 115 i.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 $5,030,000 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 55.000 shares of common stock outstanding that has a par value of $10 per share and a current market price of $160 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 Micro Advantage issued a $5,050,000 par value, 20-year bond a year ago at 98 (... 98% of par value) with a stated rate of 8%. Today, the bond is selling at 115 (ie, 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. (...1234 = 12.34%)) 4.80 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 $5,050,000 par value, 20-year bond a year ago at 98 fi.e., 98% of par value) with a stated rate of 8%. 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? 2. Micro Advantage has $5.030,000 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 55,000 shares of common stock outstanding that has a par value of $10 per share and a current market price of $160 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 (WACCF Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Micro Advantage has $5,030,000 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 (Round your answer to 2 decimal places. (...1234 - 12.34%) Acost of the pared stock 10.00% La 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 $5.050.000 par value, 20-year bond a year ago at 98 le. 98% of par value) with a stated rate of 8% Today, the bond is selling at 115 (le, 115% of par value). If the firm's tax bracket is 30%, what is the current afer-tax cost of this debt? 2. Micro Advantage has $5.030,000 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 55,000 shares of common stock outstanding that has a par value of $10 per share and a current market price of $160 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 55.000 shares of common stock outstanding that has a par value of $10 per share and a current market price of $160 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...1234 - 12.34%). "Weights to 3 decimal places, and other answers to the nearest whole dollar amount.) Show less Book Valum Current Market Weight Cost of Capital Components $ 5.000.000 s 5,030,000 Bond Preferred Stock Common Stock Total Dividend Rate 8.00 96 $ Antax Rate or Expect Return 4806 10.00 % $ 10.000.000 $ 0 0.000 0.00%
