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I need help please Below is information regarding the capital structure of Micro Advantage Incorporated. On the basis of this information you are asked to
I need help please
Below is information regarding the capital structure of Micro Advantage Incorporated. On the basis of this information you are asked to respond to the following three questions: Required: 1 Micro Advantage issued a $6,000,000 par value, 20 year bond a year ago at 98 (le, 98% of par value) with a stated rate of 9%. Today, the bond is selling at 105 (l... 105% of par value). If the firm's tax bracket is 30%, what is the current after-tax cost of this debt? 2. Micro Advantage has $5,600,000 preferred stock outstanding that it sold for $22 per share. The preferred stock has a per share par value of $25 and pays a $3 dividend per year. The current market price is $30 per share. The firm's tax bracket is 30%. What is the after-tax cost of the preferred stock? 3. In addition to the bonds and preferred stock described in requirements 1 and 2 Micro Advantage has 76,000 shares of common stock outstanding that has a par value of $10 per share and a current market price of $150 per share. The expected after-tax market return on the firm's common equity is 20%. What is Micro Advantage's weighted average cost of capital (WACC)? -35 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Micro Advantage issued a $6,000,000 par value, 20-year bond a year ago at 98 (le, 98% of par value) with a stated rate of 9%. Today, the bond is selling at 105 (le, 105% of par value). If the firm's tax bracket is 30%, what is the current after tax cost of this debt? (Round your answer to 2 decimal places, le 1234 - 12.34%) Current offerta cost of this dott Required 2 > Below is Information regarding the capital structure of Micro Advantage Incorporated. On the basis of this information you are asked to respond to the following three questions: Required: 1. Micro Advantage issued a $6,000,000 par value, 20-year bond a year ago at 98 (l.e. 98% of par value) with a stated rate of 9%. Today, the bond is selling at 105 (1.e. 105% of par value). If the firm's tax bracket is 30%, what is the current after-tax cost of this debt? 2. Micro Advantage has $5,600,000 preferred stock outstanding that it sold for $22 per share. The preferred stock has a per share par value of $25 and pays a $3 dividend per year. The current market price is $30 per share. The firm's tax bracket is 30%. What is the after-tax cost of the preferred stock? 3. In addition to the bonds and preferred stock described in requirements 1 and 2 Micro Advantage has 76,000 shares of common stock outstanding that has a par value of $10 per share and a current market price of $150 per share. The expected after-tax market return on the firm's common equity is 20%. What is Micro Advantage's weighted average cost of capital (WACC)? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Micro Advantage has $5,600,000 preferred stock outstanding that it sold for $22 per share. The preferred stock has a per share par value of $25 and pays a $3 dividend per year. The current market price is $30 per share. The firm's tax bracket is 30%. What is the after-tax cost of the preferred stock? (Round your answer to 2 decimal places (.e. 1234 - 12.34%) Alter tax cost of the preferred stock compiere this question by entering your answers in the taps berow. Required 1 Required 2 Required 3 In addition to the bonds and preferred stock described in requirements 1 and 2, Micro Advantage has 76,000 shares of common stock outstanding that has a par value of $10 per share and a current market price of $150 per share. The expected after-tax market return on the firm's common equity is 20% What is Micro Advantage's weighted average cost of capital (WACC)? (Round "Interest or Dividend Rate", "After tax Rate or Expected Return" and "Cost of Capital Components to 2 decimal places (.e. 1234 - 12.34), "Weights to decimal places, and other answers to the nearest whole dollar amount.) Show less Book Value Interest of Dividend Rate After tax Rate or Expected Return Current Market Values Weights Cost of Capital Components Bond Preferred Stock Common Stock Total 50 $ 0 $ 0 000 0.00 Step by Step Solution
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