QUESTION 4 A company's Balance Sheet (in milions) Assets Current Net Fixed Liabilities & Equity S 80 $120 Bonds ($1000 Par) 140 Total Preferred stocks ($100 Par) 40 $200 Common Stock ($1 par) 20 Total The company's bonds have 10 years to mature, pay 10% coupon rate semi-annually and comparable bonds' YTM is 12% The company's applicable tax rate is 40% The market price of common stock is $12.50 per share The common stock is constantly growing at a rate of 6%. The same $200 growth rate is expected to corti common stock was $1.5 The floatation cost for new common stocks is 15% The market value of the preferred stock is $65 and it pays quarterly dividend of $1.75 The floatation cost on issuing new preferred stock is 7% What is the WACC of the company using the market weights of capital structure (Assuming the company will issue new prefesred and commes stocks)? e r gt men eetare he stient and 18.69% 16 09% 11.39% 14.25% 8.56% nd Submit to save and submit. Cliek Save All Answers to save all anscers