QUESTIONS Liabilities & Equity Assols (in Millions) Current Net Fixed $100 $100 Bonds ($1000 Par) Preferred Stock ($100 Common Stock (51 ) Total a Total $200 100 50 50 $200 The company has some bonds outstanding with coupon rate of 10% and semiannual payments the bonds currently soll for $947 The many of those bonds IS 10 years The company's applicable tax rates 30% The preferred stocks pay quarterly dividend of $2.25 and the market price 365 25 The dividends of the common stocks of this company have been growing stoadity 145 per year, and this growth rate is expected to continue in the future Last year's dividend was 5115 The fontation cost for new common stocks is 10%. The flotation coston preferred stocks 5% the market of the common stockis 59.5 Assume the company is going to new preferred stocks and new common stocks, What is the WACC using the market weights? 13.879 12 45% 10.16% 0 1961 18.52