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For Bonds Years until maturity Coupon rate assume annual coupon payments) Face Current Price Number of bonds outstanding 25 8.30% 1,000 1,140 16,000 For Preferred
For Bonds Years until maturity Coupon rate assume annual coupon payments) Face Current Price Number of bonds outstanding 25 8.30% 1,000 1,140 16,000 For Preferred Stock Price of Preferred Stock Dividend on Preferred Number or preferred shares outstanding 34.75 3.40 38,000 For Common Stock Common price Estimated growth rate in dividends Estimated dividend in one year (Assume annual dividends) Number of common shares outstanding 26.67 2.30% 2.61 1,028,000 Tax rate 36.40% What is WACC? A Between 0.0% and 8.0% B Between 8.0% and 10.0% C Between 10.0% and 12.0% D Between 12.0% and 16.0%
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