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QUESTION 2 80 points SA Copy of A corporation has 9.000 bonds outstanding with a 5% annual coupon rate, yours to maturity, a $1,000 face

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QUESTION 2 80 points SA Copy of A corporation has 9.000 bonds outstanding with a 5% annual coupon rate, yours to maturity, a $1,000 face value and a 51.200 market price The company's 110.000 shares of preferred stock pay a $4 annual dividend, and so for $40 per share The company's 500,000 shares of common stock se for 525 por share and have a beta of 1. The risk free rate is 3%, and the market retumis 11%. Tatrate is 20% 1115 pts] Calate cont of preferred stock. Briefly show your shop 115 pts) Calculate cost of equity Briefly show your steps 115 pts] Calculate cost of debt Briefly show your steps 115 pts) What are the weights of debt, preferred stock and equity Belly show your steps 5. 20 pts] What is WACC Brely show your steps For the toolba press ALT+F10 (PC) O ALTOFNF10 M) BIU Paragraph Arial 10pt I. XO > !!! A T a > N SARAH Save and Sub Click on and click to our QUESTION 2 80 points Copy of A corporation has 9.000 bonds outstanding with a 5% annual coupon rate, 7 years to matunty, a $1.000 face valve, and a 51.200 market price The company's 110,000 shares of preferred stock pay a 54 annual dividend, and sell for $40 per share. * The company's 500,000 shares of common stock sel for $25 per share and have a bata of 1. The risk free rate is 5%, and the market return is 11%. Tax rate is 20% 1115 pts) Calculate cost of preferred stock. Briefly show your steps 2 115 pts) Calculate cost of equity. Briety show your steps 3 [15 pts) Calculate cost of debt Briety show your steps 115 pts] What are the weights of debt, preferred stock and equity Briety show your steps 5. 120 pts] What is WACC) Briefly show your son For the toolbar, press ALT F10 PC) OF ALTOFN+F10 (Mac). BI & Paragraph Arial 10pt 2 Q > !!! > iii A Z. Click Swan Subandwidten SAARE Save and Sub 88 end 000 * 3 S 4 E 3 5 & 7 V E 6 7 8 A 9 ) 0 w w E R T Y o U I O [ 19 M. 3 E P] { b s >> Ds J F G J H 1 K L 3. 1) C S V B 1 N ! M 6

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