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Calculation of individual costs and WACC Dion Labs has asked its financial manager to measure the cost of each specife type of capital as well

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Calculation of individual costs and WACC Dion Labs has asked its financial manager to measure the cost of each specife type of capital as well as the ed average cost of capital. The weighted average cost is to be measured by using the following weight: 36% long-term debt, 15% preferred stock, and 50% common stock equity retained coming ow.common stock, or both. The firm's tax rate Debt The fom consel for 1000 a 11 yeal, 51.000 par value bond paying arrestat a 7.00% coupons. A lotion cost of 25% of the per value is required Preferred stock 10.00 arvual dividend preferred stock having a par value of 100 can be sold to Anatoloof 2 per share must be paid to the underwriters Common stock The common stock is currently seling for $10 per here. The stock has paid a dividend hat has gradually increased for many years, ang tron2.75 ton years ago to the dividend payment the company Just recently made the company wants to www common stock, it will them $3.50 below the current market price to tract investors, and the company will pay 30 per share info a. Calculate the worlax cost of b. Calculate the cost of preferred lock .. Calculate the cost of common stock and earnings and new common stock) d. Calculate the WACC for Dillon Labs .. The ahor tax cost of debt using the bonde yield to maturity (TM) ) Round to two decimal place) The afer-tax cost of debt using the approximation formula is I Round to two decina pas.) b. The cost of preferred stock is (Round to two decimal places) c. The cost of retained earnings is %. Rould to two decimal places) The cost of new common stock is Round to two decimal places) d. Using the cost of retained caming, the time WACC (Round to decimal place) Using the cost of new common stock, the firm's WACC is (Round to two decimal places)

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