It says, based on market value weighings, calculate Monkey's weighted average cost of capital.

36. A Dozen Monkeys Ltd. has the following right-hand side of its balance sheet: Debt: 8% coupon, 12 years to maturity... $ 8.000.000 Preferred shares: 5% dividend. 1.000,000 Common shares: 750.000 outstanding...... 1,500,000 Retained earnings.. 4,500,000 $15,000,000 New debt could be issued to yield 10 percent, with flotation costs netting the firm $970 on each $1.000 bond. Preferred shares would require a current yield of 8 percent, with aftertax flotation costs of 4 percent. Common shares currently trade at $15.00. but new shares would be discounted to $14.25 to encourage sales. Aftertax flotation costs on new common shares would be 5 percent. The anticipated dividend growth rate is 6 percent. The expected dividend is $1.50. A Dozen Monkeys Ltd. has a 40 percent tax rate and would require new share capital to fund new investments. a. Based on market value weightings, calculate Monkey's weighted average cost of capital. 36. A Dozen Monkeys Ltd. has the following right-hand side of its balance sheet: Debt: 8% coupon, 12 years to maturity........ Preferred shares: 5% dividend.. S 8.000.000 1.000.000 Common shares: 750.000 outstanding...... Retained earnings. 1.500.000 4.500.000 $15.000.000 New debt could be issued to yield 10 percent, with flotation costs netting the firm $970 on each $1.000 bond. Preferred shares would require a current yield of 8 percent, with aftertax flotation costs of 4 percent. Common shares currently trade at $15.00, but new shares would be discounted to $14.25 to encourage sales. Aftertax flotation costs on new common shares would be 5 percent. The anticipated dividend growth rate is 6 percent. The expected dividend is $1.50. A Dozen Monkeys Ltd. has a 40 percent tax rate and would require new share capital to fund new investments. a. Based on market value weightings, calculate Monkey's weighted average cost of capital. 37 Island Canital hort