calculation of individual costs and WACC Dillon Labs has asked to financial manager to measure the cost of each specife type of capital as well as the weighted average cost of capital. The weighted average cost is to be measured by using the following weight: 35% long term dett. 15preferred lock, and 50% common stock equity and earnings, new common stock, or both the firm's tax rate is 20% Debt The firm can wel for $1000 a 15-you, 51,000 per value bond paying annual Horst at a 12.00% coupon rate. A fotation cost of of the per value is required. Preferred stock 8.00% (nul dividend preferred to having a per value of 5100 can be sold for $82. An additional fee of 53 pershere must be paid to the underwriters. Common stock The common stock is currently selling for per share. The stock has paid a dividend that has gradually increased for many years, rising from $2.50 ten years ago to the 54.48 dividend payment, D. that the company Just recently made of the company wants to se new new common stock. It will then 11.50 below the current market prices tract investors, and the company will pay per share infotation costs # Calculate the cost of debt Calculate the cost of preferred stock Catete e cost of common och red caring and new comed) d. Che WACC for Don Lab . The tax cost of debt using the band's yeld my (TM) 8. Round to two decimal places) The stor tus cost of oubt using the promotion formules Os Round to two decimal places) calculation of individual costs and WACC Dillon Labs has asked to financial manager to measure the cost of each specife type of capital as well as the weighted average cost of capital. The weighted average cost is to be measured by using the following weight: 35% long term dett. 15preferred lock, and 50% common stock equity and earnings, new common stock, or both the firm's tax rate is 20% Debt The firm can wel for $1000 a 15-you, 51,000 per value bond paying annual Horst at a 12.00% coupon rate. A fotation cost of of the per value is required. Preferred stock 8.00% (nul dividend preferred to having a per value of 5100 can be sold for $82. An additional fee of 53 pershere must be paid to the underwriters. Common stock The common stock is currently selling for per share. The stock has paid a dividend that has gradually increased for many years, rising from $2.50 ten years ago to the 54.48 dividend payment, D. that the company Just recently made of the company wants to se new new common stock. It will then 11.50 below the current market prices tract investors, and the company will pay per share infotation costs # Calculate the cost of debt Calculate the cost of preferred stock Catete e cost of common och red caring and new comed) d. Che WACC for Don Lab . The tax cost of debt using the band's yeld my (TM) 8. Round to two decimal places) The stor tus cost of oubt using the promotion formules Os Round to two decimal places)
