Question
Please help (answer in bold)! What is the WACC for a firm that has a target capital structure as follows Debt 60% Equity 15% Preferred
Please help (answer in bold)!
What is the WACC for a firm that has a target capital structure as follows
Debt 60%
Equity 15%
Preferred Stocks 25%
The most current bond can be used as a proxy for the cost of debt. This most recent issuance matures in 9 years, is selling for $1,035 and has a coupon rate of 6% that is paid semi-annually. The current selling price of preferred stock is $58. The coupon is based at 5% of par which is $100. This firm also has a current common stock dividend of $1.11, a growth rate of 5% and is currently selling for $25. Tax at 40%
ATRd :
Re :
Rps:
WACC :
Given the above WACC you have computed compute the NPV, IRR, MIRR, PB, DPB and PI for the project below.
0 | -$100,000 |
1 | $25,000 |
2 | $10,000 |
3 | $50,000 |
4 | $10,000 |
5 | $10,000 |
6 | $60,000 |
NPV :
IRR :
MIRR :
PB :
DPB :
PI :
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