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Given the following information: Percent of capital structure: Preferred stock 15 % Common equity (retained earnings) 45 Debt 40 Additional information: Corporate tax rate 35
Given the following information:
Percent of capital structure:
Preferred stock | 15 | % |
Common equity (retained earnings) | 45 | |
Debt | 40 | |
Additional information:
Corporate tax rate | 35 | % | |
Dividend, preferred | $ | 10.00 | |
Dividend, expected common | $ | 5.50 | |
Price, preferred | $ | 98.00 | |
Growth rate | 10 | % | |
Bond yield | 11 | % | |
Flotation cost, preferred | $ | 8.20 | |
Price, common | $ | 77.00 |
I'm looking for the following information:
Weighted Cost | |
Debt (Kd) | % |
Preferred stock (Kp) | |
Common equity (Ke) | |
Weighted average cost of capital (Ka) | % |
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