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Source of Capital Long-term debt Preferred stock Common stock equity TC METREE Proportions 50% 5% 35N Debt: The firm canella 15 year bond, compounded monthly,

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Source of Capital Long-term debt Preferred stock Common stock equity TC METREE Proportions 50% 5% 35N Debt: The firm canella 15 year bond, compounded monthly, with a $1000 par value and 6.8% coupon rate for $1254. A flotation cost of 1.15% of the face value would also be required. Preferred Stock The firm has determined that it can we preferred stock at $125 per share par value. The preferred stock will pay a 56.75 per share annual dividend. The cost of issuing and selling the preferred will be 53.28 per share Common Stock The firm's.common stock is currently selling for $23.75 per share. The firm will be paying a dividend of 5.25 at the end of the year. Its dividend payments have been growing at a constant rate for the last five years. Five years ago, the dividend was $3.25. For a new issue of common stock to sell, it has been determined that the new issue would need to be underpriced at $1.50 per share and that the firm must pay $1.20per share inflotation costs The firm's marginal tax rate is 21% plus 4tor state and locales. (STR.25%) To determine the firm's WACC, please complete the following thpt, entering your formules in the blue colle 4.59% A Calculate the rate for the bond, notice is has monthly compounding 3.44. Calculate the after-tax cost of the bond 5.55% c. Calculate the cost of the new issue of preferred stock 10.07 D. Calculate the growth rate of the common stock dividends. 35.01% Calculate the cost of the new common stockinue 14.59N F. Finally, calculate the firm weighted average cost of capital assuming the firm has exhausted all retained earnings, Standard formats for your calculations Debt Preferred Stock inputs Price New Coin Adredice 2.2 NPER Coupon Price Coupon Rate PMT Mit Price Market 6.80% Common Stock Growth Hote NPER PV 1254 FV 1000 RATE Formula Inauts Price New In Cot Adusted DI WACC 1000 Comendy period RATE TOTAL Source of Capital Long-term debt Preferred stock Common stock equity TC METREE Proportions 50% 5% 35N Debt: The firm canella 15 year bond, compounded monthly, with a $1000 par value and 6.8% coupon rate for $1254. A flotation cost of 1.15% of the face value would also be required. Preferred Stock The firm has determined that it can we preferred stock at $125 per share par value. The preferred stock will pay a 56.75 per share annual dividend. The cost of issuing and selling the preferred will be 53.28 per share Common Stock The firm's.common stock is currently selling for $23.75 per share. The firm will be paying a dividend of 5.25 at the end of the year. Its dividend payments have been growing at a constant rate for the last five years. Five years ago, the dividend was $3.25. For a new issue of common stock to sell, it has been determined that the new issue would need to be underpriced at $1.50 per share and that the firm must pay $1.20per share inflotation costs The firm's marginal tax rate is 21% plus 4tor state and locales. (STR.25%) To determine the firm's WACC, please complete the following thpt, entering your formules in the blue colle 4.59% A Calculate the rate for the bond, notice is has monthly compounding 3.44. Calculate the after-tax cost of the bond 5.55% c. Calculate the cost of the new issue of preferred stock 10.07 D. Calculate the growth rate of the common stock dividends. 35.01% Calculate the cost of the new common stockinue 14.59N F. Finally, calculate the firm weighted average cost of capital assuming the firm has exhausted all retained earnings, Standard formats for your calculations Debt Preferred Stock inputs Price New Coin Adredice 2.2 NPER Coupon Price Coupon Rate PMT Mit Price Market 6.80% Common Stock Growth Hote NPER PV 1254 FV 1000 RATE Formula Inauts Price New In Cot Adusted DI WACC 1000 Comendy period RATE TOTAL

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