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The BEAR Company has 1500 bonds outstanding that have a market price of $1030 each and a face value of $1000. floatation cost is 0.022
The BEAR Company has 1500 bonds outstanding that have a market price of $1030 each and a face value of $1000. floatation cost is 0.022 the bond pays coupon of 0.04 quarterly for 5 years. The company also has 6,000 shares of preferred stock at a market price of $36 and dividends 0.8 each par value 20 dollars. The common stock is priced at $27 a share it is undervalued by $1.5 and there are 200000 shares outstanding, par value is 5 dollars the stock is pays $2.5 and will continue to grow at a rate of 0.03. TAXES ARE 0.35 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 according to book value method what is the weight of the stock according to book value method what is the weight of preferred stock according to book value method what is the WACC? use the book value method
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