HW Score: 38.33%, 38.33 7 of 18 (9 complete) core: 0 of 10 pts 9-17 (similar to) Question Help Calculation of individual costs and WACC Dillon Labs has asked its financial manager to measure the cost of each specific type of capital as well as the weighted average cost of capital. The weighted average cost is to be measured by using the following weights 35% long-term debt 10% preferred stock, and 55% common stock equity (retained earnings, new common stock, or both) The firm's tax rate is 24% firm can sell for $1020 a 12-year, S1,000 par value bond paying annualm terest at a 6 00% coupon rate. A flotation cost of 4% of the par value is required Preferred stock 9 50% (annual dividend) preferred stock having a par value of S100 can be sold for S92 additional fee of $8 per share must be paid to the underwniters An stock The frm's common stock is currently seling for $90 per share The stock has paid a dvidend that a. The after-tax cost of debt using the bond's yeld to maturity (YTM) is 474 % (Round to two decmal places) (Round to two decimal places) The after-tax cost of debt using the approximation formula is Enter your answer in the answer box and then click Check Answer parts Clear Al Check Answer Type here to search Question Help pg-17 (similar to) additional tee of 56 per share must be paid to the underwriters Common stock The firm's common stock is currently selling for $90 per share. The stock has paid a dividend that has gradually increased for many years, rising from $2.70 ten years ago to the $5.07 dividend payment, Do. that the company just recently made. If the company wants to issue new new common stock, it will sell them $2.50 below the current market price to attract investors, and the company will pay $2.50 per sbare in flotation costs a. Calculate the after-tax cost of debt b. Calculate the cost of preferred stock c. Calculate the cost of common stock (both retained earnings and new common d. Calculate the WACC for Dillon Labs decanal places ) a. The after-tax cost of debt using the bonds yeld to maturity (YTM)s 4.74 % (Round to two (Round to two decimal places) Enter your answer in the answer box and then click Check Answer. 5 Pesaining Clear All Check Answer Activity Details You have viewed this topic O Type here to search