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plz write clearly You are given the following Information concerning Parrothead Enterprises: Debt: 9,700 7.2 percent coupon bonds outstanding, with 23 years to maturity and
plz write clearly
You are given the following Information concerning Parrothead Enterprises: Debt: 9,700 7.2 percent coupon bonds outstanding, with 23 years to maturity and a quoted price of 105.75. These bonds have a par value of $1,000 and pay Interest semiannually. Common stock: 260,000 shares of common stock selling for $65.20 per share. The stock has a beta of 97 and will pay a dividend of $3.40 next year. The dividend is expected to grow by 5.2 percent per year indefinitely Preferred stock: 8,700 shares of 4.60 percent preferred stock selling at $94.70 per share. Market: 11.3 percent expected return, a risk-free rate of 3.95 percent, and a 22 percent tax rate. What is the firm's cost of each form of financing? (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. Aftertax cost of debt Cost of preferred stock Cost of equity 4.69 10.61 X % 4.86 X % Calculate the WACC for the company. (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. WACC 8.28Step by Step Solution
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