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Debt Bonds outstanding 120,000 Settlement date 1/1/2020 Maturity date 1/1/2045 Annual coupon rate 4.80% Coupons per year 2 Bond price (% of par) 107 Redemption

Debt
Bonds outstanding 120,000
Settlement date 1/1/2020
Maturity date 1/1/2045
Annual coupon rate 4.80%
Coupons per year 2
Bond price (% of par) 107
Redemption (% of par) 100
Par value ($) $1,000
Common stock
Shares outstanding 6,400,000
Beta 1.08
Share price $54
Preferred stock outstanding
Shares outstanding 200,000
Coupon rate 3.80%
Par value $100
Share price $103
Market
Market risk premium 7.50%
Risk-free rate 2.40%
Tax rate

22%

Market value of debt
Market value of equity
Market value of preferred
Market value of firm
Weight of debt
Weight of equity
Weight of preferred
Pretax cost of debt
Aftertax cost of debt
Cost of equity
Cost of preferred
Discount rate for new project

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