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Hello I need to find this using excel please You are given the following information for ABC, Inc. Assume the company's tax rate is 35%.
Hello I need to find this using excel please
You are given the following information for ABC, Inc. Assume the company's tax rate is 35%. Debt: 40,000 bonds outstanding with 7.5% coupon rate, $1,000 par value, 20 years to maturity, selling for $1050; the bonds make semiannual payments. Common stock: 750,000 shares outstanding, selling for $52 per share; the beta is 0.85. Preferred stock: 1,400,000 shares of 5% preferred stock, currently selling for $25 per share. Market: 7% market risk premium and 3.5% risk-free rate. Questions: 1. What is the company's after-tax cost of debt? (5 points) 2. What is the company's cost of common stock? (5 poinst) 3. What is the company's cost of preferred stock? (5 points) 4. What is the company's WACC? (10 point) Step by Step Solution
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