lil % 100% Sat 11:43 PM Do Homework - Chapter 9 mathxl.com/Student/Player Homework.aspx?homeworkld=585835275&questionid=9&flushed=fal... FIN 311 Financial Management Winter 2020 Omosesan Adebage 4 | 01/09/21 11:42 PM Save Homework: Chapter 9 Score: 0 of 12 pts 9 of 10 ( completo HW Score: 48%, 24 of 50 pts P9-16 (similar to) Question Help Cost of capital Edna Recording Studios, Inc., reported earnings valable to common stock of 54.000.000 last year. From those carings, the company palda dividend of $116 on each of 1,000,000 common shares outstanding. The capital structure of the company includes 25% debt 25% preferred stock, and 50% common stock. It is taxed at a rate of 22% a. If the market price of the common stock is 535 and dividends are expected to grow at a rate of 6% per year for the foreseeable future, what is the company's cost of retained wringe financing? b. underpricing and flotation costs on new shares of common stock amount to 59 por share, what is the company's cost of new common stock financing 6. The company can issue $1.99 dividend preferred stock for a market price of $25 per share. Flotation costs would amount to $8 per share. What is the cost of preferred stock financing d. The company caniste 1.000-pa-value, coupon, 10-year bonds that can be sold for $1.250 each. Flotation costs would amount to $40 per hond. Use the estimation formule to figure the appreciate after-tax cost of debt financing? e. What is the WACC a. If the market price of the common stock is $35 and dividends are expected to grow a rate of 6% per year for the foreseeable future, the company's cost of retained earnings financing is 9.51% Round to two decimal places) t. I underpricing and flotation costs on new shares of common stock amount to 59 per share the company's cost of new common stock financing is 10.72% (Round to two decimal places c. If the company can issue 51.99 dividend preferred stock for a market price of 525 per share and flotation costs would amount to 36 per share the he cost of preferred stock financing 10.47% (Round to two decimal places) w d. the company can issue $1.000-value, 7 coupon, 10year bonds that can be sold for 51.250 each, and potation costs would amount to 340 per bond, using the estimation formula, the approximate aer coat of financing is 3.45%. Round to two decimal places) .. Using the cost of retained earnings, the WACC... 00:35. Round to no decimal place Enter your answer in the answer box and then click Check Answer TON 1 port remaining Clear AR Final Check with elastbook le 3 lil % 100% Sat 11:43 PM Do Homework - Chapter 9 mathxl.com/Student/Player Homework.aspx?homeworkld=585835275&questionid=9&flushed=fal... FIN 311 Financial Management Winter 2020 Omosesan Adebage 4 | 01/09/21 11:42 PM Save Homework: Chapter 9 Score: 0 of 12 pts 9 of 10 ( completo HW Score: 48%, 24 of 50 pts P9-16 (similar to) Question Help Cost of capital Edna Recording Studios, Inc., reported earnings valable to common stock of 54.000.000 last year. From those carings, the company palda dividend of $116 on each of 1,000,000 common shares outstanding. The capital structure of the company includes 25% debt 25% preferred stock, and 50% common stock. It is taxed at a rate of 22% a. If the market price of the common stock is 535 and dividends are expected to grow at a rate of 6% per year for the foreseeable future, what is the company's cost of retained wringe financing? b. underpricing and flotation costs on new shares of common stock amount to 59 por share, what is the company's cost of new common stock financing 6. The company can issue $1.99 dividend preferred stock for a market price of $25 per share. Flotation costs would amount to $8 per share. What is the cost of preferred stock financing d. The company caniste 1.000-pa-value, coupon, 10-year bonds that can be sold for $1.250 each. Flotation costs would amount to $40 per hond. Use the estimation formule to figure the appreciate after-tax cost of debt financing? e. What is the WACC a. If the market price of the common stock is $35 and dividends are expected to grow a rate of 6% per year for the foreseeable future, the company's cost of retained earnings financing is 9.51% Round to two decimal places) t. I underpricing and flotation costs on new shares of common stock amount to 59 per share the company's cost of new common stock financing is 10.72% (Round to two decimal places c. If the company can issue 51.99 dividend preferred stock for a market price of 525 per share and flotation costs would amount to 36 per share the he cost of preferred stock financing 10.47% (Round to two decimal places) w d. the company can issue $1.000-value, 7 coupon, 10year bonds that can be sold for 51.250 each, and potation costs would amount to 340 per bond, using the estimation formula, the approximate aer coat of financing is 3.45%. Round to two decimal places) .. Using the cost of retained earnings, the WACC... 00:35. Round to no decimal place Enter your answer in the answer box and then click Check Answer TON 1 port remaining Clear AR Final Check with elastbook le 3