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Please help me Quickly The BEAR Company has 2200 bonds outsnding that have a market price of $1188 each and a face value of $1000.
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The BEAR Company has 2200 bonds outsnding that have a market price of $1188 each and a face value of $1000. floatation cost is 0.025 the bond pays coupon of 0.055 quarterly for 25 years. The company also has 6,000 shares of preferred stock at a market price of $38 and dividends 0.7 each par value 20 dollars. The common stock is priced at $32 a share it is undervalued by $1.5 and there are 55000 shares outstanding, par value is 5 dollars the stock is pays $2 and will continue to grow at a rate of 0.035. TAXES ARE 0.4 what is the cost of debt after tax? what is the cost of PS what is the cost of common stock? what is the weight of the bond according to book value method what is the weight of the stock according to book value method what is the weight of preferred stock according to book value method what is the WACC? use the book value methodStep by Step Solution
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