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HELP PLEASE!! Plastic Parts Co. is a publicly traded company. - Common stock: 284,000 shares outstanding, selling for $68 per share, beta is 1.58. -
HELP PLEASE!!
Plastic Parts Co. is a publicly traded company. - Common stock: 284,000 shares outstanding, selling for $68 per share, beta is 1.58. - Preferred stock: 9,000 shares outstanding, selling for $50 per share, dividend is $8 per share. - Debt: Total market value of debt is $3,275,000. The annual coupon rate is 6.8%.$1,000 par value, 8 years to maturity, selling for $1,070, the bonds make semiannual coupon payments. - Market: 7% market risk premium and 4% risk-free rate. 8. What is the firm's cost of equity? A) 15.06% B) 8.16% C) 11.28% D) 17.72% 9. What is the firm's cost of preferred stock? A) 9.78% B) 16.00% C) 13.33% D) 9.09% 10. What is the firm's pretax cost of debt? A) 7.30% B) ]5.70% C) 3.65% D) 8.00% 11. What is the weight of common equity? A) 3.70% B) 66.30% C) 70.54% D) 83.83% Step by Step Solution
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