can you answer WACC

View Original Response O Unfiltered Response Show all attempts ABC Company's current share price is $22.9 and it is expected to pay a $1.75 dividend per share next year. After that, the firm's dividends are expected to grow at a rate of 3.8% per year. What is an estimate of ABC Company's cost of equity? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not include a percent sign in your answer. Enter your response below. Your response Correct response 11.44 11.44+0.01 Grade: 1/1.0 Click "Verify" to proceed to the next part of the question. 1.0x1/1 = 1.00 ABC Company also has preferred stock outstanding that pays a $1.85 per share fixed dividend. If this stock is currently priced at $27.2 per share, what is ABC Company's cost of preferred stock? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not include a percent sign in your answer. Enter your response below. Your response Correct response 6.80 6.8 Grade: 1/1.0 Click "Verify" to proceed to the next part of the question. 1.0x1/1 = 1.00 ABC Company has existing debt issued three years ago with a coupon rate of 6%. The firm just issued new debt at par with a coupon rate of 6.8%. What is ABC Company's pre-tax cost of debt? Enter your answer as a percentage. Do not include a percent sign in your answer. Enter your response below. Your response Correct response 6.8 6.8 Grade: 1/1.0 Click "Verify" to proceed to the next part of the question. ABC Company has 5 million common shares outstanding and 2 million preferred shares outstanding, and its equity has a total book value of $45 million. Its debt has a market value of $30 million. If ABC Company's common and preferred shares are priced at $22.9 and $27.2, respectively, what is the market value of ABC Company's assets ? Enter your answer in millions of dollars. V = Your response Correct response 198.9 198.9 Grade: 1/1.0 million Click "Verify" to proceed to the next part of the question. 1.0x1/1 = 1.00 ABC Company faces a 35% tax rate. Using the correct answers from the previous parts, what is the company's WACC? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not include the percentage sign in your answer. WACC = Your response Correct response 9.11+0.02 Grade: 0/1.0 Click "Verify" to proceed. 0.0x1/1 = 0.00 Total grade: 1.00x0.2 + 1.00x0.2 + 1.00x0.2 + 1.00x0.2 +0.000.0 = 0.20 +0.20 +0.20 +0.20 +0.00