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I need help/answers to all questions with all questions...thank you so much Homework: WACC and CAPM 1. Calculate Company A's weighted average cost of debt,
I need help/answers to all questions with all questions...thank you so much
Homework: WACC and CAPM 1. Calculate Company A's weighted average cost of debt, given the following information: (a) Tax Rate: 25%, (b) Average Price of Outstanding Bonds: $975, (c) Coupon Rate: 4%, (d) NPER: 25, (e) Debt: $23,000,000, (f) Equity: $20,000,000, and (g) Preferred Stock: $10,000,000. 2. Calculate Company B's weighted average cost of equity, given the following information: (a) Risk Free Rate of Return: 4%, (b) Market Return: 8%, (c) Beta for Company B: .80, (d) Debt: $23,000,000, (e) Equity: $20,000,000, and (f) Preferred Stock: $10,000,000. 3. Calculate Company C's weighted average cost of preferred stock, given the following information: (a) Coupon Payments: $4.00, (b) Price of Preferred Stock: $65.00, (c) Debt: $23,000,000, (d) Equity: $20,000,000, and (e) Preferred Stock: $10,000,000. 4. Calculate Company D's weighted average cost of capital, given the following information: (a) Tax Rate: 32%, (b) Average Price of Outstanding Bonds: $1,050, (c) Coupon Rate (Debt): 6%, (d) NPER (Debt): 25, (e) Risk Free Rate of Return: 3%, (f) Market Return: 10%, (g) Beta for Company B: 1.00, (h) Coupon Payments on Preferred Stock: $5.00, (i) Price of Preferred Stock: $75.00, (j) Debt: $23,000,000, (k) Equity: $20,000,000, and (l) Preferred Stock: $10,000,000. 5. Calculate the Beta on a stock with the following characteristics: (a) Return on the Market: 8%, (b) Return on the Risk Free Asset: 3%, and (c) Expected Return on the Stock: 10%Step by Step Solution
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