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I wanna check my answers. appreciate the help ANZ Industries has 20 million shares of common stock outstanding with a market price of $20.00 per
I wanna check my answers. appreciate the help
ANZ Industries has 20 million shares of common stock outstanding with a market price of $20.00 per share. The company also has 4 million preferred shares with a market price of $10. The company has 100,000 bonds selling at $950. The cost of equity is 12 percent, the cost of preferred is 9 percent, and the cost of debt is 7 percent before tax. If ANZ's tax rate is 30 percent, what is the WACC? The company's beta is 0.8. The risk-free rate = 3% and and market return = 9%. What is the cost of equity? Stock price of preferred stock, Pr = $34; the Dividend on Preferred stock, Dividend = $3, the Flotation cost, F = $4. What is the cost of Preferred stock? A 10-year, 8% semi-annual coupon bond sells for $800. Assume future value = $1000. What is the before tax cost of debt? If the tax rate is 30%, what is the after-tax cost of debt? To estimate the company's WACC. (1) PNZ stock's expected dividend, D1 is $3, the dividends are expected to grow at a constant growth rate of 5%. The flotation cost is 10%. Stock price is $40. (2) The firm's bonds mature in 10 years, have an 6.00% annual coupon, a par value of $1,000, and a market price of $ 880. (2) The company's tax rate is 40%. The target capital structure consists of 35% debt, 55% equity and 10% preferred stock. Preferred stock has a cost of 8.5%. What is its WACCStep by Step Solution
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