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Debt 5,000 bondspar $1,000 with a maturity 20 years; semi annual compounding. Coupon rate 8%. Price $1,310.Tax rate=33% Preferred 50,000 shares of 3% par value
Debt 5,000 bondspar $1,000 with a maturity 20 years; semi annual compounding. Coupon rate 8%. Price $1,310.Tax rate=33%
Preferred 50,000 shares of 3% par value $100 stock. Current price $63.00.
Common stock 72,000 shares currently selling for $87.00.The beta of the firm is 1.17, the risk free rate is 2.78%, Market return (Rm) =8.6%.
What is the Cost of debt, Cost of preferred, Cost of equity and WACC?
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