Question
The BEAR Company has 1,500 bonds outstanding that have a market price of $980 each. floatation cost is 0.02 the bond pays coupon of 0.04
The BEAR Company has 1,500 bonds outstanding that have a market price of $980 each. floatation cost is 0.02 the bond pays coupon of 0.04 semiannually for 15 years. The company also has 5,000 shares of preferred stock at a market price of $38 and dividends 0.7 each. The common stock is priced at $28 a share it is undervalued by $2 and there are 36,000 shares outstanding, the stock is expected to pay $1.1 and will continue to grow at a rate of 0.065.
TAXES ARE 0.4
what is the cost of debt after tax?
what is the cost of PS
what is the cost of common stock?
what is the weight of the bond
what is the weight of the stock what is the weight of the stock
what is the weight of preferred stock
what is the WACC?
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