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QUESTION TO ICLO 3 Consider the following information for Contie Pic Obe 70.000 percent coupon bonds outstanding with par value of $1.000 and 15 years

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QUESTION TO ICLO 3 Consider the following information for Contie Pic Obe 70.000 percent coupon bonds outstanding with par value of $1.000 and 15 years to maturity, selling for 105 thanh Canon stock 375.000 shares outstanding, selling for 151 per share the beta is 1.15. Preferred stock 125.000 shares of 5.5 percent preferred stock outstanding currently selling for son per share tar 100 Atant 9 percent market risk premium and 5 percent risk free rate. Assume the company's tax rates 28 percent A calculate the market value of each component of the capital structure Debt, common stock and preferred sock) well as the man whom b) Calculate the cost of equity Calculate the after tax cost of debt D) Calculate the cost of preferred stock E) Calculate the weighted average cost of capital (WACC), QUESTION 10 [CLO-3) Consider the following information for Costie Pic: Debt: 70,000 8 percent coupon bonds outstanding with par value of $1,000 and 15 years to Common stock: 375,000 shares outstanding, selling for $51 per share the beta is 1.15 Preferred stock: 125,000 shares of 5.5 percent preferred stock outstanding, currently selling for Market: 9 percent market risk premium and 5 percent risk-free rate. Assume the company's tax 28 A) Calculate the market value of each component of the capital structure (Debt, common stock and order B) Calculate the cost of equity. C) Calculate the after-tax cost of debt. D) Calculate the cost of preferred stock E) Calculate the weighted average cost of capital (WACC), !!! 10! For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BI U S Paragraph Arial 14px Woolpro QUESTION 10 [CLO-3 Consider the following information for Costie Plic Debe: 70,000 8 percent coupon bonds outstanding with par value of $1.000 and 15 years to maturity for VOSS payments Common stock 375,000 shares outstanding, selling for 551 per share the beta i 1.15. Preferred stock: 125,000 shares of 5.5 percent preferred stock outstanding currently selling for $10 per share para Market: 9 percent market risk premium and 5 percent risk-free rate. Assume the pompany's taken 2 percent A) Calculate the market value of each component of the capital structure (Debt, common stock and preferred to statom B) Calculate the cost of equity. C) Calculate the after-tax cost of debt. D) Calculate the cost of preferred stock E) Calculate the weighted average cost of capital (WACC)

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