M 1 hour, 20 minutes 20 seconds Quemen Complet SS ERNST Mong to adher question will save this response Question 10 of 17 Question 10 9 points Corporation has 211 on shares of common stock outstanding with a book value per share of 755 with a recent divided of 4.25 The fem's capital also includes 290000 shares of 5.5% preferred stock outstanding with a par value of 100 and the ima debt include 2250 85 percent quarterly bonds outstanding with 35 years maturity issued five years ago. The current trading price of the preferred stock and bonds a 100% of A value and a noman slock trades for 255 with a constant growth rate of 10%. The beta of the stock in 1.13 and the market risk premium is 7%. Calculate the after tax Weighted Avergae Cost of Capita of the frm assuming a tax rate of 30% (Must show the steps of calculation) for the toolbar, press ALT-10 (CALTHF0Mad B VS Paragraph Arial topt E A 2 Ixo F *** MacBook Air W 221 DII FA P P r W = E 3 #3 2 80 #F S 4 R 3 200 P (10) 3 % O T 2 #s 6 1 Y m.s 8: & 7 V 8 A I 69 4 DD ) O 0 [ 9 . FH FR I 4 P1 !! 3 Question Completion a 1ST SRST BRST HOST Yourers are save y Question 10 of 17 Miving others wit save the 9 points Question 10 Zaw Corporation has 2.11 n shares of common stock outstanding with a book value per share of 755 with a recent divided of 4:25. The fem's capital also includes 200000 shares of 5.5% preferred stock utanding with a par val of 100 and the tems debt include 2250 65 percent quarterly bonds outstanding with 35 years maturity issued five years ago. The current trading price of the preferred stock and bonds 100% of par value mon stock rates for 255 with a constant growth rate of 1% The beta of the stock is 1.13 and the market risk premium is 7%. Calculate the after tax Weighted Avergan Cost of Capit of the maing a tax rate of 30% (Mustafow the steps of calculation) For the press ALTIPIDPC or ALT-FN-F10 (Mag VS Arial 10pt IE I. XO MacBook Air DI # 9 F FF O 2 r W 3 #3 E 3: S r 4 E R A 1.10 % 50 M # 6 T 2 1 Y m. s 87 & V U 40 FF 8 A 1 ( 9 9 3 4 DD O > O N P "' a ! AS Remaining Time: 52 minutes, 45 seconds. Question Completion Status: 12 1 Moving to another question will save this response Question 10 of 17 points Question 10 Zietlow Corporation has 2.11 million shares of common stock outstanding with a book value per share of 753 with a recent divided of 4.25. The firm's capital also includes 290000 shares of 5.5% preferred stock outstanding with a par value of 100 and the firms debt include 2250 6.5 percent quarterly bonds outstanding with 35 years maturity issued five years ago. The current trading price of the preferred stock and bonds are 100% of its par value and comomon stock trades for 255 with a constant growth rate of 16%. The bota of the stock is is 1.13 and the market risk premium is 7%. Calculate the after tax Weighted Avergse Cost of Capital of the firm assuming a tax rate of 30%. (Must show the steps of calculation) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). www BIUS Paragraph M Arial 10pt EY AV SCF I. XOQ WACC weight of equity Re weight of preference stock Rd weight of debt" Rd(1-6) 10% 11
