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PIE Corporation has 8 . 7 5 million shares of common stock outstanding, 2 1 5 , 0 0 0 shares of RM 6 annual
PIE Corporation has million shares of common stock outstanding, shares
of RM annual dividend preferred stock outstanding, and of semiannual
bond outstanding. The common stock is currently sells for RM per share and has a
beta of the preferred stock currently sells for RM per share, and the bonds have
years to maturity and sell for of par. The market risk premium is Tbills are
yielding and corporate tax rate is Calculate the following:
a Firms market value capital structure.
b Cost of equity.
c Cost of preferred stock.
d Cost of debt.
e Weighted Average Cost of Capital WACC
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