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Bunupruit Corporation has bem empaped in the sale of halo halo for several years already You were approached by the CEO and President, Landang N.

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Bunupruit Corporation has bem empaped in the sale of halo halo for several years already You were approached by the CEO and President, Landang N. Kamote, to analyze ther capital structure. The following information is available to you Its capital structure is compound of P20 million of bonds payable with a yield of 6%, P5 million preferred stock: P10 million retained comings, and P15 million common stock It is currently being charged an income tax rate of 32% The corporation's preferred stock currently sells for P90 per shate and pays a dividend of P10 per share Its common stock currently sells for P40 per share For common stockholders, it recently paid a dividend of P2 per share on its common stock Investors expect that the dividends on common stock would grow indefinitely at a constant rate of 10% per year V w Binignit Corporation's cost of common equity is type your

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