Calculate weighted average cost of capital for TEST. Question number 4

Calculate the cost of equity for Titan Executive Solution. TLC(TEST). Assume the stock market is returning 6% and TEST has a beta of 1.3. TEST has 1, 200,000 shares outstanding that are currently trading at $10 per share. Assume the current T-Bill rate is 0.3%. Calculate the cost of preferred stock for TEST. They have 500,000 shares of preferred stock outstanding that are trading at $10 and pay $1 in dividends annually. Calculate the cost of debt for TEST. They currently have outstanding30 year, 8% bonds that were issued 12 years ago. The company has 5,000 bonds outstanding that are currently selling tor 89% of their face value. TEST pays 34% of income in taxes