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Calculate the capital weights: what is the weight of debt? what is the weight of preferred shares? what is the weight of common equity? Calculate

Calculate the capital weights:
what is the weight of debt?
what is the weight of preferred shares?
what is the weight of common equity?
Calculate the cost of capital for:
debt?
preferred equity?
common equity?
What is the firm-wide WACC?
(please round to 2 decimal places for all answers)
image text in transcribed
CyberTruck Vanities has market values of debt, preference shares and common equity of $250 million, $120 million, and $425 million, respectively. The yield to maturity of its only outstanding bond is 3.5%, compounded semi-annually, and the coupon rate is 4.9%, paid semi-annually. Its perpetual, preferred shares are currently trading at $26.36 and the next preferred dividend, due in 12 months, will be $ 1.53 per share. Finally, the equity beta is 0.8, and analysts estimate that the aggregate market will return 5.3% in excess of the risk-free rate of 2.5% over the coming 12 months. The applicable corporate tax rate is 22.5%

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