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Question 5 2 pts Kondor Hotel and Lodging Associates would like invest in $100 million capital investment. Assume that the investments will be funded by

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Question 5 2 pts Kondor Hotel and Lodging Associates would like invest in $100 million capital investment. Assume that the investments will be funded by a capital structure of 30.00% debt, 30.00% preferred stock, and 40.00% total equity. Of the equity portion of the capital structure, 30.00% is the external equity and 10.00% is the internal equity. Here are the details of the cost of capital: - The company's twenty-five year, $1,000 bond issuances have 10.00% coupon rate and an issuance cost of $20.00 for each bond. - Kondor plans to issue its preferred stock with a market price of $100 which pays an arlnual dividend of $12.00 per share with $4.00 issuance cost on each share issuance. - The company's new common stock is currently selling for $30.00 per share and it pays a current annual dividend of $2.00 per share. The dividends are expected to grow at a 5.00% constant rate forever. There are $3.00 issuance costs per share. - Kondor is also planning to reinvest its retained earnings by issuing a common stock. Its common stock is currently selling for $20.00 a share. This company wants to reinvest its retained earnings by issuing a new common stock with this price. Imagine that the current dividend per share is estimated as $0.40. If the expected dividend growth rate is 5.00% constant forever - The marginal tax rate applied to this company is 40.00%. By funding this investment with the different sources of the capital, calculate the WACC for Kondor Hotel and Lodging Associates. Also, calculate the cost amount of total equity (external and internal) that this company has to pay for this new investment. 12.91% WACC and $5,055,700 the cost amount of total equity 9.40% WACC and $3,112,550 the cost amount of total equity 11.45% WACC and $4,913,200 the cost amount of total equity 10.13% WACC and $$4,544.000 the cost amount of total equity

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