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C. CALCULATION SECTION Instructions : In this section, please show all calculations . Partial credit will be given wherever possible, when your calculations are shown

C. CALCULATION SECTION

Instructions: In this section, please show all calculations. Partial credit will be given wherever possible,

when your calculations are shown and they are completed correctly.

1-3 Promo Pak, Inc. has compiled the following financial data:

Source of Capital:

Book Value:

After-Tax Cost

Long-Term Debt

$10,000,000

5.0%

Preferred Stock

1,000,000

14.0%

Common Stock

9,000,000

20.0%

Totals:

$20,000,000

Calculate the

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