QUESTION 1

What is the Market Value of the Debt in dollars? (Enter with no $ or commas)

QUESTION 2

What is the Market Value of the Common Stock equity? (Enter with no $ or commas)

QUESTION 3

What is the Market Value of the preferred stock? (Enter with no $ or commas)

1 points

QUESTION 4

What is the cost of debt? (Enter as a percentage with no %sign and with two decimals)

QUESTION 5

What is the after-tax cost of debt? (Enter as a percentage with no %sign and with two decimals)

QUESTION 6

What is the Cost of Common Stock using the DGM? (Enter as a percentage with no %sign and with two decimals)

QUESTION 7

What is the Cost of Common Stock using CAPM? (Enter as a percentage with no %sign and with two decimals)

QUESTION 8

What is the Cost of CS using the average of DGM and CAPM? (Enter as a percentage with no %sign and with two decimals)

1 points

QUESTION 9

What is the Cost of Preferred Stock? (Enter as a percentage with no %sign and with two decimals)

1 points

QUESTION 10

What is the Value of the Firm? (Enter with no $ or commas)

QUESTION 11

What percentage of the market value is comprised of Debt? In other words, what is the weighting for debt? (Enter as a percentage with no %sign and with one decimal)

QUESTION 12

What is the weight for Common Stock? (Enter as a percentage with no %sign and with one decimal)

QUESTION 13

What is the weight for Preferred Stock? (Enter as a percentage with no %sign and with one decimal)

QUESTION 14

What is the WACC? (Enter as a percentage with no %sign and with two decimals)

Debt: 13,000 6.2 percent coupon bonds outstanding, with 15 years to maturity and a quoted price of 107. These bonds pay interest semiannually. 345,000 shares of common stock selling for $73.50 per share. The stock has a beta of .90 and will pay a dividend of $3.35 next year. The dividend is expected to grow by 5 percent per year inde finitely. 10,000 shares of 4.1 percent preferred stock selling at $86 per share. 12 percent expected return, risk-free rate of 3.5 percent, and a 35 percent tax rate. Common stock: Preferred stock: Market