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Compute the weighted cost of capital for a firm with a marginal tax rate of 3 4 % , a capital structure of 4 3
Compute the weighted cost of capital for a firm with a marginal tax rate of a capital structure of common stock, preferred stock and the remainder in debt given the following:
A bond with a coupon rate of with interest payments of $ paid semiannually. The bonds have a current market value of $ and will mature in years. What is the aftertax cost of debt? points
A new common stock issue that will pay $ next year. The dividends are expected to continue to grow at per year forever. The current price of the common stock is $ What is the cost of common equity? points
A preferred stock that sells for $ and pays a dividend of and has a par value of $ What is the cost of preferred stock? points
What is the weighted average cost of capital for the firm? points
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