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can you please help me out on these problems with a full explanation please, thank you in advance Finding the WACC Given the following information
can you please help me out on these problems with a full explanation please, thank you in advance
Finding the WACC Given the following information for Lightning Power Co., find the WACC. Assume the company's tax rate is 21 percent. Debt: 12,000 bonds with a 4.6 percent coupons outstanding, $1,000 par value, 25 years to maturity, selling for 105 percent of par; the bonds make semiannual payments. Common stock: 575,000 shares outstanding, selling for $81 per share; beta is 1.04 Preferred 30,000 shares of 3.4 percent preferred stock outstanding, a stock: $100 par values, currently selling for $94 per share. Market: 7 percent market risk premium and 3.2 percent risk-free rate. Questions and Problems Problem 14 This is a long problem like the one we did in class from the handout. It is also exactly the same as in the handout. What is the value of debt? Enter the figure in the space below. Do not enter the $ sign. QUESTION 10 Questions and Problems Problem 14 This is a long problem like the one we did in class from the handout. It is also exactly the same as in the handout. What is the value of equity. Enter the figure in the space below. Do not enter the $ sign. QUESTION 11 Questions and Problems Problem 14 This is a long problem like the one we did in class from the handout. It is also exactly the same as in the handout. What is the value of preferred equity? Enter the figure in the space below. Do not enter the $s sign. Questions and Problems Problem 14 This is a long problem like the one we did in class from the handout. It is also exactly the same as in the handout. What is the capital structure of the firm? Nd=40.32%,We=55.13%,andWp=4.55%Nd=15.32%,We=75.13%,andWp=9.55%Wd=20.32%,We=75.13%,andWp=4.55% QUESTION 13 Questions and Problems Problem 14 This is a long problem like the one we did in class from the handout. It is also exactly the same as in the handout. What is the cost of debt, that is what is the YTM of the bonds? Enter the figure in the space below. Do not enter the \% sign. This is a long problem like the one we did in class from the handout. It is also exactly the same as in the handout. What is the cost of equity? Pay attention, they give you the risk premium. Enter the figure in the space below. Do not enter the % sign. QUESTION 15 Questions and Problems Problem 14 This is a long problem like the one we did in class from the handout. It is also exactly the same as in the handout. What is the cost of preferred equity? Enter the figure in the space below. Do not enter the % sign. QUESTION 16 Questions and Problems Problem 14 This is a long problem like the one we did in class from the handout. It is also exactly the same as in the handout. What is the WACC? Enter the figure in the space below Do not enter the % sign. 3. 71% 3.52%Step by Step Solution
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