Question
The charter company has the following financing outstanding. What is the WACC for the company? Debt: 40,000 bonds with a 7% coupon rate and a
The charter company has the following financing outstanding. What is the WACC for the company?
Debt: 40,000 bonds with a 7% coupon rate and a current price quote of 900 DOLLAR WITH FLOATING COST OF 2% the bonds have 8 years to maturity. 150,000 zero coupon bonds with a price quote of 185 and 30 years to maturity.
Preferred Stock: 100,000 shares of 5% preferred stock with a current price of $78, and a par value of $100.
Common Stock: 1,800,000 shares of Common Stock; the current price is $75. And the beta of the stock is 1.2.
Market: The corporate tax rate is 40%, the market risk premium is 7%, and the risk-free rate is 4%
SHOW CALCULATION OF THE COST OF DEBT ,PS AND C.S AND HOW YOU CALCULATED THE WEIGHT
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