Goal: Calculate the WACOC Firm calculating cost of capital for major expansion program. Tax rate = 40%. 15-year, 12% coupon, semiannual payment noncallable bonds sell for $1,153.72. New bonds will be privately placed with no flotation cost. 10%, $100 par value, quarterly dividend, perpetual preferred stock sells for $111.10. . common stock sells for $50. Do-$4.19 and g-596. . b = 1.2; rRF-796; RPM-696. Bond-Yield Risk Premium = 4%. Target capital structure: 30% debt, 10% preferred, 60% common equity. Goal: Calculate the WACOC Firm calculating cost of capital for major expansion program. Tax rate = 40%. 15-year, 12% coupon, semiannual payment noncallable bonds sell for $1,153.72. New bonds will be privately placed with no flotation cost. 10%, $100 par value, quarterly dividend, perpetual preferred stock sells for $111.10. . common stock sells for $50. Do-$4.19 and g-596. . b = 1.2; rRF-796; RPM-696. Bond-Yield Risk Premium = 4%. Target capital structure: 30% debt, 10% preferred, 60% common equity