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Curry Construction's CFO has collected the follows market value information. She has assigned you the task of calculating their WACCs. The cost of common equity

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Curry Construction's CFO has collected the follows market value information. She has assigned you the task of calculating their WACCs. The cost of common equity is 16%. They have 25 million share with a book value of $11.87, and a current market price of $27.37. The cost of preferred stock is 11%. They have 150,000 shares of preferred stock outstanding with a book value of $100 per share and a current market price ot $105.00 per share. The company currently has $10,000,000 of 20-year bonds outstanding. The bonds have a 9 percent annual coupon, a face value of $1,000, and they currently sell for $950 The company's tax rate is 40 percent. a. What is Curry's Book value Weighted Average Cost of Capital? b. What is Curry's Market value Weight Average Cost of Capital? What is the primary reason a company goes bankrupt

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