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JYP has 7 , 0 0 0 bonds outstanding that are selling at 9 5 percent of par. Bonds with similar characteristics are yielding 7
JYP has bonds outstanding that are selling at percent of par. Bonds with similar characteristics are yielding percent, pretax. The company also has shares of percent preferred stock and shares of common stock outstanding. The preferred stock sells for $ per share. The common stock has a beta of and sells for $ per share. The preferred stock has a stated value of $ The US Treasury bill is yielding percent and the return on the market is percent. The corporate tax rate is percent.
Calculate the following values:
a Market value of debt
b Market value of common stock
c Market value of preferred stock
d Cost of Debt
e Cost of Preferred Stock
f Cost of Equity
g WACC
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