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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 7,000 bonds outstanding that are selling at 95 percent of par. Bonds with similar characteristics are yielding 7.2 percent, pretax. The company also has 50,000 shares of 6 percent preferred stock and 80,000 shares of common stock outstanding. The preferred stock sells for $66 per share. The common stock has a beta of 1.25 and sells for $45 per share. The preferred stock has a stated value of $100. The U.S. Treasury bill is yielding 2.5 percent and the return on the market is 11 percent. The corporate tax rate is 24 percent. (21%)
Calculate the following values:
a. Market value of debt(3%)
b. Market value of common stock (3%)
c. Market value of preferred stock(3%)
d. Cost of Debt(3%)
e. Cost of Preferred Stock (3%
f. Cost of Equity(3%
g. WACC(3%)
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