Calculation of individual costs and WACC Lang Enterprises is interested in measuring its overall cost of capital Current investigation has gathered the following data Them is in the tax bracket Debt The firm can raise debt by selling 51.000 par value. 9 coupon interest rate, 13 your bonds on which are interest payments will be made to tell the sun average discount of 45 per bond would have to be given The firm also must pay flotation costs of $30 per bond Preferred stock The firm can sell 75% preferred stock at its 590 per share par value. The cost of issuing and selling the preferred stock is expected to be pershare Preferred stock can be sold under these form Common stock The firm's common stock is currently seling for 585 per share. The firm expects to pay cash dividends of per share best year. The firm's dividends have been growing at an annual rate of is, and this growth is expected to continue into the future. To sell new shares of common stock, the firm must underprice the stock by S7 per share and folation costs are expected to amount to 54 per share the fomcasel new common stock under these terms Retained earnings When measuring this cost the fem does not concern itself with the tax bracket or brokerage fees of owners expects to have available $120.000 of retained earnings in the coming yearonce these retained earings are exhausted the firm will use new common stock as the form of common stock equity financing a. Calculate the after-tax cost of debt b. Calculate the cost of preferred stock a. The after-tax cost of debt using the approximation formula is Round to two decimal places) Theater-tax cost of debt using the bonds yield to maturity (TM) (Round to two decimal places) b. The cost of preferred stock is Os Round to two decimal places) c. The cost of retained earnings is [] [Round to two decimal places) The cost of new common stockis (Round to two decimal places Enter your answer in each of the answer boxes Calculation of individual costs and WACC Lang Enterprises is interested in measuring is overall cost of capital Current investigation has gathered the following data. The firm is in the 35% tax bracket Debt The firm can raise debt by selling 51.000 par value 9% coupon interest rate 13-year bonds on which are interest payments will be made. To set the issue an average discount of 545 per bond would have to be given The firm also must pay flotation costs of 30 per bond Preferred stock The fem can sell 75% preferred stock at its $90-per-share par value. The cost of issuing and selling the preferred stock is expected to be 54 per share. Preferred stock can be sold under these terms Common stock The fom's common stock is currently selling for 505 per share. The firm expects to pay cash dividends of 58 per share next year. The's dividends have been growing at an annual rate of os, and the growth is expected to continue Into the future. To sell new shares of common stock, the form must underprice the stock by S7 per share and lotation costs are expected to amount to 54 per share the fem canelow common stock under these terms Retained earnings When measuring this cout the firm does not concern itself with the tax bracket or brokerage foes of owners expects to have valabile $120.000 of retained earnings in the coming year, once these returned earnings are exhausted the firm will use new common stock as the form of common stock equity financing a. Calculate the after-tax cost of debt. b. Calculate the cost of preferred stock The after tax cost of debt using the approximation formula is % Round to two decimal places) Theater tax cost of debt using the bonds yield to maturity CTM I3 (Round to two decimal place) D. The cost of preferred stock is Is (Round to two decimal place) c. The cost of retained earnings is I (Round to two decimal places) The cost of new common stock is Round to two decimal places Enter your answer in each of the answer boxes Calculation of individual costs and WACC Lang Enterprises is interested in measuring its overall cost of capital Current investigation has gathered the following data Them is in the tax bracket Debt The firm can raise debt by selling 51.000 par value. 9 coupon interest rate, 13 your bonds on which are interest payments will be made to tell the sun average discount of 45 per bond would have to be given The firm also must pay flotation costs of $30 per bond Preferred stock The firm can sell 75% preferred stock at its 590 per share par value. The cost of issuing and selling the preferred stock is expected to be pershare Preferred stock can be sold under these form Common stock The firm's common stock is currently seling for 585 per share. The firm expects to pay cash dividends of per share best year. The firm's dividends have been growing at an annual rate of is, and this growth is expected to continue into the future. To sell new shares of common stock, the firm must underprice the stock by S7 per share and folation costs are expected to amount to 54 per share the fomcasel new common stock under these terms Retained earnings When measuring this cost the fem does not concern itself with the tax bracket or brokerage fees of owners expects to have available $120.000 of retained earnings in the coming yearonce these retained earings are exhausted the firm will use new common stock as the form of common stock equity financing a. Calculate the after-tax cost of debt b. Calculate the cost of preferred stock a. The after-tax cost of debt using the approximation formula is Round to two decimal places) Theater-tax cost of debt using the bonds yield to maturity (TM) (Round to two decimal places) b. The cost of preferred stock is Os Round to two decimal places) c. The cost of retained earnings is [] [Round to two decimal places) The cost of new common stockis (Round to two decimal places Enter your answer in each of the answer boxes Calculation of individual costs and WACC Lang Enterprises is interested in measuring is overall cost of capital Current investigation has gathered the following data. The firm is in the 35% tax bracket Debt The firm can raise debt by selling 51.000 par value 9% coupon interest rate 13-year bonds on which are interest payments will be made. To set the issue an average discount of 545 per bond would have to be given The firm also must pay flotation costs of 30 per bond Preferred stock The fem can sell 75% preferred stock at its $90-per-share par value. The cost of issuing and selling the preferred stock is expected to be 54 per share. Preferred stock can be sold under these terms Common stock The fom's common stock is currently selling for 505 per share. The firm expects to pay cash dividends of 58 per share next year. The's dividends have been growing at an annual rate of os, and the growth is expected to continue Into the future. To sell new shares of common stock, the form must underprice the stock by S7 per share and lotation costs are expected to amount to 54 per share the fem canelow common stock under these terms Retained earnings When measuring this cout the firm does not concern itself with the tax bracket or brokerage foes of owners expects to have valabile $120.000 of retained earnings in the coming year, once these returned earnings are exhausted the firm will use new common stock as the form of common stock equity financing a. Calculate the after-tax cost of debt. b. Calculate the cost of preferred stock The after tax cost of debt using the approximation formula is % Round to two decimal places) Theater tax cost of debt using the bonds yield to maturity CTM I3 (Round to two decimal place) D. The cost of preferred stock is Is (Round to two decimal place) c. The cost of retained earnings is I (Round to two decimal places) The cost of new common stock is Round to two decimal places Enter your answer in each of the answer boxes