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The BEAR Company has 2500 bonds outstanding that have a market price of $1200 each and a face value of $1000. floatation cost is 0.022

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The BEAR Company has 2500 bonds outstanding that have a market price of $1200 each and a face value of $1000. floatation cost is 0.022 the bond pays coupon of 0.045 quarterly for 16 years. The company also has 6,000 shares of preferred stock at a market price of $36 and dividends 11.2 each par value 20 dollars. The common stock is priced at $28 a share it is undervalued by $1.5 and there are 40000 shares outstanding, par value is 5 dollars the stock is pays $1.5 and will continue to grow at a rate of 0.07. 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 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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