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Caliper Ltd. has market values of debt, preference shares and common equity of $170 million, $90 million, and $ 425 million, respectively. The yield
Caliper Ltd. has market values of debt, preference shares and common equity of $170 million, $90 million, and $ 425 million, respectively. The yield to maturity of its only outstanding bond is 4.5%, compounded semi-annually. and the coupon rate is 6.2% paid semi-annually. Its perpetual, preferred shares are currently trading at $25.39 and the next preferred dividend, due in 12 months, will be $1.73 per share. Finally, the equity beta is 1.1, and analysts estimate that the aggregate market will return 4.3% in excess of the risk-free rate of 2.5% over the coming 12 months. The applicable corporate tax rate is 25.0%. Calculate the capital structure weights: The weight of debt is The weight of preferred shares is The weight of common equity is Calculate the cost of capital for ... debt: preferred equity: common equity: What is the firm-wide WACC? %. (round to 2 decimal places) %. (round to 2 decimal places) %. (round to 2 decimal places) %. (round to 2 decimal places) %. (round to 2 decimal places) %. (round to 2 decimal places) %. (round to 2 decimal places)
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