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Help please show your operations Cost of Capital Name: Lang Enterprises is interested in measuring its overall cost of capital. Current investigation has gathered the

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Cost of Capital Name: Lang Enterprises is interested in measuring its overall cost of capital. Current investigation has gathered the following data. The firm is in the 40% tax bracket. Debt: The firm can raise debt by selling $1,000-par-value, 8% coupon interest, 20 year bonds on which semi-annual interest payments will be made. Since the firm pay little flotation costs, we ignore this cost for the calculation. Preferred stock: The firm can sell 8% preferred stock at its $95-per-share par value. The cost of issuing and selling the preferred stock is expected to be $O per share. . Common stock: The firm's common stock is currently selling for $90 per share. The firm expects to pay cash dividends of $7 per share next year. The firm's dividends have been growing at an annual rate of 6%, and this growth is expected to continue into the future. The flotation costs are expected to amount to $5 per share. The firm can sell new common stock under these terms Retained Earnings: It expects to have available $0 of retained earnings in the coming year . 1) Calculate the after-tax cost of debt 2) Calculate the cost of preferred stock 3) Calculate the cost of common stock Calculate the firm's weighted average cost of capital using the capital structure weights shown below 4) Source of Capital Long-term debt Preferred stock Common stock equity Weight 30% 20% 50%

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