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(CLO-3) Consider the following information for Finrange Plc. Debt: 80.000 9 percent coupon bonds outstanding with par value of 51.000 and 15 years to maturity,

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(CLO-3) Consider the following information for Finrange Plc. Debt: 80.000 9 percent coupon bonds outstanding with par value of 51.000 and 15 years to maturity, seling for 105 percent of par the bonds make semiannual payments. Common stock: 450.000 shares outstanding selling for $51 per share the beta is 1.3. Preferred stock: 100,000 shares of 5.5 percent preferred stock outstanding currently selling for $109 per share (par value=100), Market: 9 percent market risk premium and 4.5 percent risk-free rate. Assume the company's tax rate is 26 percent A) Calculate the market value of each component of the capital structure (Debt common stock and preferred stock) as well as the total market value of the firm. (2 marks) B) Calculate the cost of equity. (2 marks) C) Calculate the after-tax cost of debt. (3 marks) D) Calculate the cost of preferred stock. (1 marks) E) Calculate the weighted average cost of capital (WACC). (3 marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) BI VS Paragraph Arial iii

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