Below is leformetion regarding the capitel structure of Miero Advantoge lncorporated On the basis of this infornation you are asked to respond to the following three questions: Required: Required: Micro Advantage issued a 55,000,000 par value, 20 year bond a year ogo of 98 (lo, 08k of par value) with a stated rate of 98 . Today, the bond is seling at tio (1., H0\%s of par value). If the fim's tox bracket is 30%, what is the current after tax cost of ths debt? 2. Micro Advantage has $5,000,000 preforred stock outstending that i1 sold for $24 per share. The prefened stock has a per share par. valie of $25 and pays a 53 dividend per yese. The eurrent market price is $30 per shate. The firmis taic bracket is 30k What is the ofter-4ar cost of the prefered stock? In addition to the bonds and preferred stoek described in requlrementst and 2. Miceo Advantege has 50.000 shares of common tock outstanding that has o par value of $10 per share and a current market price of \$170 per shere. The expected aftenther market feturn on the firm's common equity is 20\%. What is Micra Advantage's weighted-iverage cost of copital (WACC)? Complete this question by entering your answers in the tabs below. cost of the debe? (Gaund yeur andeer to 2 despiai piacts, (le (1234 =12.346)). Below is information regard ing the capilal structure of Micro Advantage incorporaled On the bosis of this information you are askend to respond to the following three questions: Requlied: 1. Micro Advantage issued a 55,000,000 par value. 20 year bond a year ago at 98 ble, 216 s of par valuel with s stated rate or 9% Today, the bond is selling at tho fe. flot of par valool if the fim's thx bracket is 30k, what is the current ather tar cost of this dobt? 2. Micro Advantage has $5,000,000 preferred atock outatanding that it sold for 524 per share. The preferred stock has a per share par velue of 525 and poys a $3 dividend per yeac The current market perice is $30 per share. The firmis tax bracket is 30h. What is the atertax cost of the preforred alock? 3. In oodisen to the bonds and preferred stock descrbed in requirement 1 and 2, Micro Advantsge his 50,000 shares of common stock outitanding that has a par value of $10 per share and a current maket price of $170 per share. The expected ahertax market Complete this question by entering your answers in the tabs below. 3065: Whut is the inereme cout of the greferred itock? varue of $2 and pays a 39 a vaend per year. ine current marxet price is 3sU per snare, ine firm 5 tax bracket is sumb, wrat is the after-tax cost of the preferred stock? 3. In addition to the bonds and preferred stock described in requlrements 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-average cost of capital (WACC)? Complete this question by entering your answers in the tabs below. In addition to the bonds and preferred stock described in requiremento 1 and 2, Micro Mdvantage has 50,000 shares of common stock outstanding that has a par vatue of $10 per ahare and a current market arice of $170 per share. The expected after tax market rotum on the frmis common equity is 20 . What is Micro Advantage's weighted average cost of capital (WACC)? (Aound "After-ax Pate or Expected Retum" and "Coot of Capital Comperenta" to 2 decimal
