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century corporation has 10,000 bonds outstanding with 6% annual coupon rate, 8 years to maturity, a $1000 face value and a $1000 market price. the
century corporation has 10,000 bonds outstanding with 6% annual coupon rate, 8 years to maturity, a $1000 face value and a $1000 market price.
the company's 100,000 shares of preferred stock pay a $3 annual dividend and sell for $30 per share.
the company's 500,000 shares of common stock sell for $25 per share and have beta of 1.5. the risk free rate is 4% and the market return is 12%. the corporate tax rate is 21%.
REQUIRED
what is the before tax cost of debt?
what is the after tax cost of debt?
what is the cost of preferred equity?
what is the cost of common equity?
what is the matket value of debt?
what is the value of common equity?
what is the market value of the preferred shares?
what is century's WACC rounded to two decimal places?
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