Dividend expected to be paid to Common stock investors in year one: $$1\mathrm{.}62/$share

Expected dividend growth rate in perpetuity: $3\mathrm{.}5\%/$year

Current market price of company's common stock: $$13\mathrm{.}00/$share

Company's debt is in the form of $7-$year, $11\%($annual$)$ bonds with a face value of $$1,000$ per bond. Current market value of bonds is $$1,058\mathrm{.}81/$bond

Number of common stocks outstanding: $21,000,000$

Market value of total capital: $$420$ million

The company's marginal tax rate: $35\%$

Calculate the weights of debt and equity in the company's capital structure

$95\%$ and $5\%$

$50\%$ and $50\%$

$35\%$ and $65\%$

I don't have enough information to find the weights

$1$ points

QUESTION $2$

Calculate the cost of common equity for the company

$16\mathrm{.}40\%$

$46\mathrm{.}29\%$

$12\mathrm{.}46\%$

$15\mathrm{.}96\%$

$1$ points

QUESTION $3$

Calculate the cost of the company's debt

$4\mathrm{.}91\%$

$9\mathrm{.}80\%$

$9\mathrm{.}82\%$

$8\mathrm{.}84\%$

$1$ points

QUESTION $4$

If the answers to the above three questions are: WD $=30\%,$ RD $=8\%$ and RE $=14\%,$ calculate the weighted average cost of capital for the company

$11\mathrm{.}36\%$

$12\mathrm{.}20\%$

$11\mathrm{.}00\%$

None of the above. WACC can't be found without WE