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please help as soon as you can i will rate the thumps up ST9-1 Individual costs and WACC Humble Manufacturing is interested in measuring its

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please help as soon as you can
i will rate the thumps up
ST9-1 Individual costs and WACC Humble Manufacturing is interested in measuring its overall cost of capital. The firm is in the 40% tax bracket. Current investigation has gathered the following data: Debt The firm can raise debt by selling $1,000-par-value, 10% coupon interest rate, 10 year bonds on which mal interest payments will be made. To sell the issue, an average discount of $30 per hond entst be given. The firm must also puy flutution costs of $20 per bond. Preferred stock The firm can sell 11% (annual dividendi preferred stock at 1 $100-per-share par value. The cost of issuing and selling the preferred stock is expected to be 54 per share. Common stock The firm's common stock is currently selling for $80 per share. The firm expects to pay cash dividends of S6 per stare next year. The firm's divi dends have Ixen growing at an annual rate of 6%, and this rate is expected to continue in the future. The stock will have to be underpriced by S4 per share, and floration costs are expected to amount to $4 per share Retained earnings The firm expects to have $225,000 of retained earnings avail able in the coming year. Once these retained carnings are exhausted, the firm will use new common stock as the form of common stock exuity financing 1. Calculate the individual cost of each source of financing. Round to the nearest 0.1%.) b. Calculate the firm's weighted average cost of capital using the weights shown in the following table, which are based on the firm's target capital structure propor- tions. (Round to the nearest 0.1%. Weight 40' 15 Source of capital Lung-bum dubt Preferred stock Common stock equiry Tural 428 100 BE

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