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Calculation of individual costs and WACC Dilon Late has asked abs francial manager to mestore the cost of each specific type of capital as well

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Calculation of individual costs and WACC Dilon Late has asked abs francial manager to mestore the cost of each specific type of capital as well as the weighted average cost of capital. The waighted average cost is to be measured by using the following weight 35% long-term bl25% preferred Mock and 40% common stock equity retained earrings, new common stock, or both The fis tax rate is 23% Debe The fim can sell for 51030 a 17-year $1.000 pale bond paying annual interest 8.00% coupon rate. A fotation cost of 2% of the par vaker ls required Preferred stock 8.00% (annual dividend preferred stock having a par value of 5100 can be sold for 598. An additional fee of 55 per share must be paid to the underwriters Common stock The firm's common stock is current setting for Sto per stare. The stock has paid a dividend that has gradually increased for many years, rising from $2.75 ton years ago to the $541 dividend payment Oy, that the company just recently made of the company want to ince new new common work. It will sell them $350 below the current market price to attract investors, and the company will pay $2.50 per share information Calculate the worlax cost of debt Calculate the cost of preferred stock Calculate the cost of OTTO stock (both retained earnings and new common stock d. Calculate WACC for Dillon Labs Theater-tax cost of debt using the bonde yield lo matury (YTM around to ho decimal place) The after tax coat of debt using the approximation formula E (Round to two decimal places) The cost of preferred Round to two decimo aces) . The cost of retained earings sound to wo decinem) The cost of new common stock round to two decimal poo) 4. Using the cost of retained eaming, the fins WACC Cound town decimal places Using the cout of new common stock the fos WAOC Round to two decimal places.)

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