COST OF CAPITAL

Phillips' current capital structure is comprised of $$450,000,000$ in debt, $$300,000,000$ in preferred equity, and $$200,000,000$ in common equity. Phillips currently has issued bonds that mature in $10$ years with a coupon rate of $3\%$ and a current market price of $$845.$ Preferred shares of Phillips are trading at $$\frac{16}{?}$ share and pay an annual dividend of $$\frac{0\mathrm{.}85}{?}$ share. Common stock of Phillips has a beta of $1\mathrm{.}6$ and trades at $$60/$share$.$ The $10-$year US treasury yield is $3\mathrm{.}0\%.$ The market risk premium is estimated at $9\mathrm{.}25\%.$ Their tax rate is $35\%.$

Round answers to four decimal places $($ie$.1125$ or $11\mathrm{.}25\%)$

What is the current cost of Phillips debt capital?

$[$Select$]$

What is the current cost of Phillips preferred equity capital?

$5\mathrm{.}31\%$

What is the current cost of Phillips common equity capital $($using $($APM$)?$

$17\mathrm{.}80\%$

What is Phillips Weight Averaged Cost of Capital?

$[$ Select$]$

$46\%F$

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