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I would like to ask if anyone can use a paper and pen to show me how to calculate this question.I think using excel can
I would like to ask if anyone can use a paper and pen to show me how to calculate this question.I think using excel can be hard for me to understand.Thank you for anyone gonna help me with these question
Use the following information to work problems 1-5: 4.) Compute the cost of equity. Tax rate is 21 percent Debt: 16,000 6% coupon bonds outstanding, $1,000 par value, 25 year to maturity, selling for $1,080. The bond make semi-an payments. Common Stock: 535,000 shares outstanding selling for $81 per share with a beta of 1.20 Preferred Stock: 20,000 shares of 4.2% preferred stock outstanding currently selling for $92 per share. Par value is $100. Market: Market risk premium is 7%. The risk-free rate of 3.1% 5.) Compute the weighted average cost of capital (WACC). 1.) Compute the market weights in the debt, preferred stock and common stock. 2.) Compute the cost of debt. 3.) Compute the cost of preferred stock. Focus 2 words lo W Tyne here to searchStep by Step Solution
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