Jacks Company has planned capital expenditures of $1,500,000 for the coming fiscal year.

They have prioritized 5 projects at a total cost of$1,500,000 to be financed in the following way:

Debt

$200,000

Preferred Stock

200,000

Common Equity

600,000

The bonds have a coupon rate of 7% and will sell for par value. The preferred stock is 10%, $100 par.

It sells for par value with $5 per share flotation costs. The common stock of the company sells for $73

per share with flotation costs of $3.00 per share. It is expected to pay a $9 dividend in the coming

year. The company's growth rate is expected to be constant at 4%. The company's tax rate is 30%.

The Net Income for the Company this year is expected to be $1,000,000. The dividend payout ratio is

70%. Assume the beginning retained earnings balance = 0

Fill in the yellow highlighted areas in the chart

WACC 1 Source: Weight: Debt Cost of Capital: % Weighted Cost: RANGE: P/S C/E WACC 1 = WACC 2 Weight: Cost of Capital: % Source Debt Weighted Cost: RANGE: P/S C/E WACC 2 =