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Given the following information for Zenth In., Answer the questions mentioned in the form. Debt A : 500 Bonds, 8 percent coupon bonds outstanding, $1,000

Given the following information for Zenth In., Answer the questions mentioned in the form. Debt A : 500 Bonds, 8 percent coupon bonds outstanding, $1,000 par value, 40 years bond issued 15 years ago, selling for 95 percent of par; the bonds make Semi Annual payments. Debt B: 700 Bonds, 12 percent coupon bonds outstanding, $2,000 par value, 5 years left in maturity, selling for 105 percent of par; the bonds make quarterly payments Debt C: $200,000 as Bank Loan @ 12% (Hint: Take interest percentage of Bank Loan as cost of Debt-C, principal amount of loan as MV of Debt) Common stock: 50,000 shares outstanding, selling for $95 per share; Next year Dividend as $2.07and growth rate is 5%. Preferred stock: 7,000 shares outstanding, currently selling for $72 per share, preferred dividend is $6.05 Market: 8 percent market risk premium and 5 percent risk-free rate, the beta is 1.02. Assume the companys tax rate is 35 percent.

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