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Given the following information for USF Inc:Debt 25,000 7.6 percent coupon bonds outstanding, $1,000 par value, 30 years to maturity, selling for 99 percent of

Given the following information for USF Inc:Debt

25,000 7.6 percent coupon bonds outstanding, $1,000 par value, 30 years to maturity, selling for 99 percent of par; the bonds make semi-annual payments

Common Stock

395,000 shares outstanding, selling for $76 per share; with the next dividend expected to be 1.15 and after that a constant dividend growth rate of 5%.

Preferred Stock

30,000 shares of 4.5 percent preferred stock outstanding, $100 par value, currently selling for $64 per share

Market Information

6.5 percent market risk premium and 4.1 percent risk free rate

Company information

Tax rate: 35 percent

Calculate the following items

Market value of the debt

Market value of the equity

Market value of preferred stock

Market value of the firm

Cost of Equity

Cost of Debt (After-Tax)

Cost of Preferred Stock

WACC

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