Question 11 pts

A company has the following capital structure: $10 million from bonds, $25 million from preferred stock, and $150 million from common stock. The cost of each source of funding is as follows: Bonds = 7.00%; Common = 8.75%; Preferred = 5.50%. Compute the company's WACC.

Group of answer choices

7.09%

8.75%

8.22%

0.38%

Flag question: Question 2Question 21 pts

A company's capital structure is as follows: $10 million in preferred stock, $100 million in common stock, and $10 million in bonds. What is the weight (in the capital structure) of the company's preferred stock?

Group of answer choices

10.00%

8.33%

20.00%

83.33%

Flag question: Question 3Question 31 pts

A company's preferred stock is currently priced at $23.00 per share. The company's dividend is $1.75. Compute the cost of the company's preferred stock.

Group of answer choices

9.31%

7.61%

12.61%

8.80%

Flag question: Question 4Question 41 pts

A company has the following capital structure: $5 million from bonds, $25 million from preferred stock, and $100 million from common stock. The cost of each source of funding is as follows: Bonds = 8.00%; Common = 11.75%; Preferred = 7.50%. Compute the company's WACC.

Group of answer choices

9.04%

10.79%

7.50%

11.75%

Flag question: Question 5Question 51 pts

A bond has a coupon rate of 6.0%. The bond expires in 10 years. The yield on the bond is 4.60%. The company's tax rate is 35.0%. Calculate the company's current cost of debt (the cost of the bond).

Group of answer choices

2.99%

4.60%

6.0%

3.90%

Flag question: Question 6Question 61 pts

A company has the following capital structure: $10 million from bonds, $25 million from preferred stock, and $150 million from common stock. The cost of each source of funding is as follows: Bonds = 5.40%; Common = 6.75%; Preferred = 5.25%. Compute the company's WACC.

Group of answer choices

5.40%

6.75%

5.47%

6.47%

Flag question: Question 7Question 71 pts

A company's common stock is currently priced at $83.00 per share. The company's dividend is $5.50. Investors expect the company to grow at an annual rate of 5.0%. Compute the cost of the company's common stock.

Group of answer choices

8.76%

11.63%

6.63%

7.85%

Flag question: Question 8Question 81 pts

A company's capital structure is as follows: $15 million in preferred stock, $25 million in common stock, and $2 million in bonds. What is the weight (in the capital structure) of the company's common stock?

Group of answer choices

59.52%

4.76%

35.71%

100%

Flag question: Question 9Question 91 pts

A company has the following capital structure: $5 million from bonds, $25 million from preferred stock, and $100 million from common stock. The cost of each source of funding is as follows: Bonds = 6.00%; Common = 10.75%; Preferred = 7.50%. Compute the company's WACC.

Group of answer choices

10.75%

8.27%

7.50%

9.94%

Flag question: Question 10Question 101 pts

A company's common stock is currently priced at $11.00 per share. The company's dividend is $1.50. Investors expect the company to grow at an annual rate of 3.0%. Compute the cost of the company's common stock.

Group of answer choices

13.64%

11.00%

16.64%

12.51%