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Flower Corporation has 5.5 million shares of common stock outstanding, 302,000 shares of 4.2 percent preferred stock outstanding, par value of $100 (the preferred stock
Flower Corporation has 5.5 million shares of common stock outstanding, 302,000 shares of 4.2 percent preferred stock outstanding, par value of $100 (the preferred stock dividend is calculated as its rate times the par value), and 155,000 5.5 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $72.90 per share and has a beta of 1.11 , the preferred stock currently sells for $104.20 per share, and the bonds have 20 years to maturity and sell for 103.6 percent of par. The market risk premium is 6.7 percent, T-bills are yielding 3.3 percent, and the firm's tax rate is 21 percent. What is the firm's market value capital structure? Note: Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616. What is the firm's cost of each form of financing? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16
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