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please help w the three qs . Use the following information to answer questions 20 through 25: Acme Services' CFO is considering whether to take
please help w the three qs
. Use the following information to answer questions 20 through 25: Acme Services' CFO is considering whether to take on a new project that has average risk. She has collected the following information: The company has outstanding bonds that mature in 15 years. The bonds have a face value of $1,000, an annual coupon of 7.5%, and sell in the market today for $1,150. There are 15,000 bonds outstanding. The risk-free rate is 3%. The market risk premium is 5%. The stock's beta is 0.9. The company's tax rate is 35%. The company has 100,000 shares of preferred stock with a par value of $100. These shares are currently trading at $73, and pay an annual dividend of $3.50. The company also has 2.250,000 common shares trading at $15. These shares last paid an annual dividend of $0.33 . . What is the value of Acme's debt? trix O $21.25M $20.25M ces $17.25M O $18.25M s $19.25M What is the cost of Acme's preferred shares? 4.79% 04.01% O 5.15% or 3.29% htrix O 6.94% What is the weight of Acme's preferred shares? 13.55% O 12.52% 15.75% 14.96% 16.33% Step by Step Solution
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