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NSU Unlimited, Inc. can sell bonds with a par value of $1,000 and a coupon rate of 8% per year, paid semi-annually. The bonds will

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NSU Unlimited, Inc. can sell bonds with a par value of $1,000 and a coupon rate of 8% per year, paid semi-annually. The bonds will have a maturity of 5 years. The current market price of similar bonds is $975. NSU Unlimited, Inc. can sell preferred stock with the following characteristics: $100 par value, 5% annual dividend. The stock is currently selling for a price of $87.50 per share. NSU Unlimited, Inc. can sell common stock at a price is $150 per share. The stock last paid a semi-annual dividend of D0=$2.50 per share. The dividend is expected to grow at an annual rate of 8% for the foreseeable future (i.e., for a really.long time). The company's tax rate is 40%. 2021 Balance Sheet (thousands of dollars) page 3, example 3 - calculate the capital weights, the cost of debt, the cost of preferred stock, the cost of common equity AND the overall weighted average cost of capital (WACC) MBA Capital Budgeting handout.rt

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