Calculate part a- Weight of Preferred Stock

LO 4 requit 11. Book Value versus Market Value Masterson, Inc., has 4.1 million shares of common stock outstanding. The current share price is $84, and the book value per share is $11. The company also has two bond issues outstanding. The first bond issue has a face value of $ 70 million, has a coupon rate of LO 3 12. Calculating the WACC In Problem 11, suppose the most recent dividend was $3.95 and the dividend growth rate is 5 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 21 percent. What is the company's WACC? ecc Te WACC ie 1