Manufacturer
Tax Rate	40%
Payout Ratio	25%
	1/1/2018
Maturity Date	1/1/2038
Frequency	2
Face Value	$ 1,000
Coupon Rate	9.00%
Selling Price	$950
Flotation Costs on Debt and Preferred	3.00%
Preferred Dividend	$3.50
Preferred/Common Stock Book Value	$40
Preferred Price	$50
Last Common Dividend (D0)	$2.50
EPS 5 Years Ago	$8.00
Price on Common Share	$25.00
Flotation Costs on Common Equity	7.00%
Source	Quantity
Common	200,000
Preferred	100,000
Debt	7,000
Totals
Yield to Maturity	4.90%
After-tax Cost of Debt	2.94%
Cost of Preferred Equity	7.00%
Growth Rate	4.69%
Cost of Retained Earnings	15.16%
Cost of New Common Equity	15.94%
Weighted Average Cost of Capital
Book Value Weights
With Retained Earnings
With New Common Equity
Market Value Weights
With Retained Earnings
With New Common Equity