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The ACME Toy Company has the following information. Computer the cost of capital for each. Use the Excel formulas (RATE, PV, etc, where needed) a.

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The ACME Toy Company has the following information. Computer the cost of capital for each. Use the Excel formulas (RATE, PV, etc, where needed) a. It has $1,000 par value bond with a 10% annual coupon rate and a 20 year maturity. The investors require a 15% rate of return. Compute the market value of the bonds and the after -tax cost if the tax rate is 21% and you can buy the bond for $950 b. ACME's common stock paid a $1.50 dividend last year. In addition, their dividends are growing at 5% per year. The price of this stock is currently $95.00. Compute the cost of this capital. c. ACME's preferred stock is payinng a 11% dividend on a $100 par value. The market price of shares is currently $130.00/ share. Compute the cost of this capital. d. Using a cost of debt at 6% and a tax rate of 21% compute the cost of debt. Part c Part d

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