Below is Informetion regarding the captal structure of Micro Advantage Incorporated On the basis of this information you are asked to respond to the following three questions Requlred: 1. Micro Advantage issued a $5,000,000 par value, 20 -year bond a year ago at 98(1.0,98% of par valuel with a stated rate of 9% Today, the bond is selling at 110 (Ce. 110x of par value), If the firm's tax bracket is 30%, what is the current affer tax cost of this debt? 2. Miero Advantoge has $5,000,000 preferred stock outstanding that it sold for $24 per share. The preforred 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 Advantege has 50,000 shares of common stock outstanding that has a par value of $10 per share and a current market pice of $170 per share. The expected oheritak market return on the firm's common cquly is 20 shat is Micro Advantage's weighted-average cost of eapital WACC]? Complete this question by entering your answers in the tabs below. Micro Advantage issued a 55,000,000 par.value, 20-year bond a year ago at 98 (1.e, 9846 of par value) with a stated rate of 974. Today, the bond ie lielling at 110 (iee, 110\% of par value). If the firm's tax brachat is 30%k, what is the current ahenike 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 $5,000,000 par value, 20-year bond a year ago at 98 (i.e., 98% of par value) with a stated rate of 9%. Today, the bond is selling at 110 (.e,, 110% of por value). If the firm's tax bracket is 30%, what is the current attertax 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 poys a $3 dividend peryear. The current merket price is $30 per share. The firm's tax bracket is 30%. What is the ofter-tox cost of the preferred stock? 3. In addivon 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 shate and a current market price of $170 per share. The expected after-tax market retum on the firm's comman 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. Mico Advantage has $5,000,000 oreferred stock outstanding that it sold for $24 per share. The preferred stock has a per share par value of $25 and pove a $3 dividend per year. The current market price is $30 per share. The firm's tax bracket is 30\%5. What is the after-tax cost of the preferred atock? In addition to the bonds and preferred stock descnbed in requlrements 1 and 2 , Micro Advantage has so,000 shares of common stock outstanding that has a par-value of $10 per share and a cucrent market price of $170 per share. The expected after-tax market return on the firm's comman equity is 204 . What is Micro Advintoge's weighted-average cost of caphal (WACC)? (Rourd "Ahterntax Rate or Expected return" and "Cost of Copital Components" to 2 decimal placers (i.e. 1234 i 12.347 ). Weights" to 3 decimal places, and other answers to the nearest whole doliar amount
